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Tepco may spin off hydroelectric, renewable energy division

JIJI

Tokyo Electric Power Co. is considering spinning off its hydroelectric and renewable energy division when it switches to a holding company in April 2016, informed sources said Tuesday.

A rehabilitation plan compiled last January calls on Tepco to split the three businesses of fuel and thermal power, electricity transmission and distribution, and retail under a holding company.

The company now wants to spin off hydroelectric and renewable energy operations as well to manage the business more efficiently as a priority area, the sources said.

Tepco has been decimated by the nuclear debacle at the Fukushima No. 1 power plant.

To encourage new entry into the nation’s electricity market, the government plans to oblige suppliers to separate power production from distribution and transmission in 2018-2020.

Tepco will move into a holding company to prepare for the new obligations, and other electricity firms may follow suit.