The overall cost of wrapping up the Fukushima nuclear disaster is now estimated at more than ¥20 trillion, nearly double the previous estimate, sources familiar with the matter said Monday.
The Ministry of Economy, Trade and Industry, which previously put the overall cost at ¥11 trillion, is considering passing on a portion of the costs, including for compensation and the decommissioning of the Fukushima No. 1 nuclear plant, to consumers via higher electricity prices, the sources said.
The aged, six-reactor plant, operated by Tokyo Electric Power Co. Holdings Inc., was plunged into a blackout by the March 2011 earthquake and subsequent tsunami, leading to three core meltdowns and the worst nuclear disaster since Chernobyl in 1986.
According to the new estimate, Tepco’s compensation payments will rise to ¥8 trillion from ¥5.4 trillion and decontamination costs will double to around ¥5 trillion.
Trillions more will be needed to decommission the reactors and deal with radioactive water at the plant, on top of the ¥2 trillion earlier estimated, the sources said.
The ministry has been discussing reforming crisis-hit Tepco and is about to draft a plan for the utility based on the new estimate within this year.
Combined with the cost of building interim waste storage facilities, foreseen to remain at ¥1.1 trillion, the total cost is forecast to surpass ¥20 trillion, the sources said.
The government is studying the possibility of expanding a ¥9 trillion interest-free loan program for Tepco that was set up by issuing government bonds to cover compensation payments and decontamination costs in areas hit by the disaster.
It is expected to take up to 30 years to recover the ¥9 trillion through payments from Tepco and other big utilities.
The government also plans to recover the expected increase in compensation payments and decontamination expenses by raising charges for transmission line usage for new electricity retailers.
In principle, Tepco needs to secure funds on its own for decommissioning the plant. The government will manage the funds, which will be established using profits generated by the utility. But it is not clear if Tepco alone can shoulder the cost.