Tokyo Electric Power Co. on Thursday requested an injection of ¥1 trillion from a government-backed entity to avoid insolvency but left unsettled such key questions as how big a stake the utility will let the state have in return for receiving taxpayers’ money.
Tepco needs massive funds not only to compensate people affected by the crisis at the Fukushima No. 1 nuclear power plant but also to scrap the facility’s crippled reactors and meet growing fuel costs for thermal power generation.
The move marks the beginning of a process to put Japan’s largest utility under temporary government control, but twists and turns are expected over deciding the amount of shares the government will acquire to intervene in Tepco’s management and who will take over from departing Chairman Tsunehisa Katsumata.
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