Tokyo Electric Power Co is reportedly working on a restructuring plan which will allow it to end the financial year with a profit for the first time since 2011.
The goal to end 2013 in the black was said to be a condition set by the various lending institutions to allow future refinancing.
TEPCO reportedly suggested that it would cut costs by putting off the repair of power generating and transmitting facilities until the following year among other strategies. They have also requested a safety inspection for Units 6 and 7 of the Kashiwazaki-Kariwa nuclear plant in Niigata Prefecture, suggesting plans to reactivate them possibly next year.
The plan will be completed by the end of November which TEPCO assures lenders will “allow operation in the black in 2013 without reopening nuclear plants or raising electricity rates.” To this the lenders have expressed their intentions to refinance 77 billion yen due to be repaid at the end of October. From there a further 200 billion yen is expected to be refinanced along with an additional 300 billion yen loan.
Internet commenters had plenty to say on the subject.
-- “Wow, they made a profit through some creative accounting. I wonder what they’ll do next year?” -- “I’m sure the executives are going to get a bonus for this!” -- “Turning a profit by cutting repair costs… boy, that’s really something.”
While the details of TEPCO’s restructuring plan have yet to be revealed, it’s hard to imagine how they will plan to continue turning a profit without raising people’s electricity bills in the years beyond 2013.
Sources: Asahi Shimbun, Kopipe
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