A government panel submitted a final report on Tokyo Electric Power Co.'s management and financial situation to Prime Minister Yoshihiko Noda on Oct. 3. Its purpose was to find ways to raise funds from Tepco's assets so that victims of the accidents at the Fukushima No. 1 nuclear power plant could be compensated. It estimated that the amount of redress claims by the end of March 2012 will total ¥4.5 trillion. The government has already set up an entity tasked with securing funds for the redress. Public money will be injected if necessary.
The panel called on Tepco to raise ¥707.4 billion by selling assets and to reduce costs by ¥2.545 trillion over 10 years (roughly twice the amount Tepco originally planned), including cutting the Tepco group's workforce by 7,400, or 14 percent, and reducing pensions for both current and retired workers.
As the panel said, since Tepco gets public financial support, it should carry out additional restructuring efforts, including more cost cuts and asset sales. The Tepco management should take responsibility for the nuclear fiasco in concrete forms, such as resignation, salary cuts and relinquishing of retirement allowances.