Tokyo Electric to suffer 200 bln yen in extra costs after quake - report |
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Sun, 22 Jul 2007 09:00
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TOKYO (Thomson Financial) - Tokyo Electric Power Co Inc (TEPCO) is likely to suffer additional costs of at least 200 billion yen after its nuclear power plant was damaged by an earthquake last week, the Nikkei newspaper reported Sunday.'It is extremely difficult' for TEPCO to resume operations at the plant by March next year as it will taketime to have its quake-resistance capabilities reinforced, the daily said.If it is unable to resume operations by March, the quake-related cost will be at least 200 billion yen,wiping out half of the pretax profit it forecast, the Nikkei said.Japanese authorities have ordered TEPCO to suspend operations indefinitely at the Kashiwazaki-Kariwa plant, the world's largest nuclear power facility, which was hit by the 6.8 Richter-scale quake on July 16.Fires broke out at the plant after the powerful quake, which also caused minor radioactive leaks. The Nikkei said TEPCO will be forced to compensate clients for electric power expected to have been supplied from the plant, which accounts for 47 percent of TEPCO's entire nuclear energy generation.Higher crude oil prices have also pressured the company, according to Nikkei, saying that if the price remains at 65 dollars per barrel, it would slash TEPCO's profit by 60 billion yen for the fiscal year to March 2008.The powerful quake struck just nine kilometers from the plant, which automatically shut down. The quake killed 10 people, injured more than 1,000 and destroyed hundreds of buildings.The earthquake has also caused leading automakers, including Toyota Motor Corp, to cut production after damage to a key supplier of car parts.afp/msmsCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Central Japanese factories still idle after earthquake 