TEPCO books 903-B.-yen special loss over N-plant decommissioning

The company determined that additional spending is necessary for the full-scale removal of nuclear fuel debris at the plant in Fukushima Prefecture, northeastern Japan. The debris was formed after the plant suffered reactor meltdowns following the March 2011 massive earthquake and tsunami.

As a result, TEPCO posted a consolidated net loss of 857.6 billion yen for the quarter, compared with a net profit of 79.2 billion yen a year before. It was the largest net loss for the company in April-June.

TEPCO did not disclose full-year forecasts, but a massive net loss is expected for the year through next March.

The special loss comprises expenses for removing fuel debris from the Fukushima plant's No. 1 to No. 3 reactors, including probing the insides of the reactors, lowering radiation levels in the reactor buildings and demolishing facilities that obstruct the removal work.

TEPCO estimates that it will take about 12 to 15 years to prepare for the full-scale removal. It aims to start the project with the No. 3 reactor in fiscal 2037 or later and complete it by 2051.

As the decommissioning process is expected to cost 8 trillion yen in total, the power utility sets aside around 260 billion yen per year on average for this purpose. As of the end of June, 697.2 billion yen remained in the fund.

"There will be no issues with the decommissioning process in the immediate future," TEPCO Representative Executive Vice President Hiroyuki Yamaguchi said.

In April and June, TEPCO's revenue decreased due to lower electricity sales. Its ordinary profit came to 101.2 billion yen, almost unchanged from the previous year.

As the reason for leaving its full-year projections undecided, the company cited uncertainty over when it can restart the Kashiwazaki-Kariwa nuclear plant in Niigata Prefecture, central Japan.

[Copyright The Jiji Press, Ltd.]