Tepco Plans Initial $600 Million Payment to Evacuees of Nuclear Disaster
Tokyo Electric Power Co. said it expects to make initial payments of about 50 billion yen ($600 million) to compensate evacuees from the area near the damaged Fukushima Dai-Ichi nuclear power plant.
The company plans to offer 1 million yen per household and 750,000 yen for single-person households within 30 kilometers of the plant, President Masataka Shimizu said at a briefing in Tokyo today. About 50,000 families who were ordered to leave their homes or to remain indoors will receive the financial aid, he said.
Tokyo Electric has tumbled more than 70 percent, the worst performer on the MSCI World (MXWO) Index, since the March 11 earthquake and tsunami knocked out cooling systems at the plant and caused the worst nuclear disaster since Chernobyl. The company, known as Tepco, may face claims of as much as 11 trillion yen, which may lead to nationalization, Bank of America Corp.’s Merrill Lynch said last month.
Chief Cabinet Secretary Yukio Edano said today the government ordered Tepco to start paying evacuees of the accident by the end of the month. The goal is to get the initial compensation payments out before Japan’s Golden Week holidays, which begin April 29, Edano said.
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