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Tepco holding company shift being mulled

JIJI

Tokyo Electric Power Co. is planning to reorganize itself under a holding company by as early as fiscal 2016 with the aim of increasing management efficiency, sources said Friday.

The holding company would own three subsidiaries, one to handle fuel procurement and thermal power generation, the second responsible for power transmission and distribution, and the third taking care of retail electricity, the sources said.

The company dealing with the stricken Fukushima No. 1 nuclear plant will include the reorganization in its revised special reconstruction plan to be drawn up by year’s end.

Tepco adopted an in-house company system in April with the goal of eventually adopting a holding company structure.

After it shifts to a holding company system, the power utility will aim to manage earnings and cut costs further through the subsidiaries. It plans to scrap 10 branch offices in its service area.