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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
Read more stories from RocketNews24. -- Report From Japanese Nuclear Industry Insiders: Business is Booming -- Subcontractors Ripping Off Fukushima Workers -- TEPCO Employees' Children Targets for Bullying
© RocketNews24
17 Comments
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Open Minded
If they can go back to black figures next year - which is any way a book game - with 10's of idled NPP, what the hell the lot of money were they making prior 3/11?
Rick Kisa
So shamelessly, the only interest here seems to clearly be how to balance books and quickly start getting the usual abnormal profits; rather than how to ensure the needs of the customers are satisfied: viz security and safety, proper ressettlement and compensation of the displaced, proper nuke waste management and disposal, maintainance of good image as a reliable company of choice for provision of sustainable supplies of cheap, pro-people, safe, clean, environment friendly electricity
Skeeter27
I can only say one thing, "how?"
Serrano
They got quite a bit of money from me the past few months as I had had the AC on a lot...
kurisupisu
How laughable! 100s of tons of radioactive water flows into the Pacific everyday,radioactivity spikes to dangerous levels and Tepco can make a profit? While the world's biggest nuclear disaster continues everybody is looking the wrong way. The Russians prevented the reactor at Chernobyl from spewing in a matter of weeks-the Japanese haven't even started after two and a half years and counting......
smithinjapan
I really, really can't follow the logic behind not liquidating this company. They JUST had the banks roll over TEPCO loans, they have yet to pay pretty much all compensation, they have upped executive salaries over the past year, they ask the government for more bailout money, they try to go above the PM's head to have the Fukushima plant's 5 and 6 reactors saved for reuse, and they are ALLOWED to go back into the black while jacking up energy costs to boot????
Get Real
Back in Black?
More like Highway to Hell!
Frungy
How TEPCO plans to get back in the black:
"Delay" payment to Fukushima victims
"Delay" safety upgrades on nuclear power plants
"Delay" hiring new staff
"Delay" regular maintenance
"Speed up" tariff increases
"Speed up" getting reactors back online
"Speed up" executive bonuses for getting them back in the black....and by "delay" I mean "forget about it/never going to happen/don't hold your breath/will happen shortly after rapture".
some14some
very sad news.
spudman
Creative accounting and they will be in the black but only after huge write offs of tax payers money.
Disillusioned
So, they openly admitted the meltdowns were a man-made disaster that could have been avoided by enacting safety recommendations that they ignored, they have increased electricity tariffs to compensate, they are procrastinating over compensation payouts and they are using untrained 'scab labor' to clean up the world's worst nuclear disaster and nobody has faced any kind of negligence charge, but they are allowed to turn a profit to appease they investors? You have to be shitting me!!! If they make a profit it should be guarneshered and put into the pockets of the victims of Fukushima and all the TEPCO customers.
sillygirl
Great that means we will get a reduction in our monthly bills.
Magnet
Their plan is to continue not paying compensation claims, continue requesting for government bailouts, all while continuing with their tradition of cost-cutting by cutting corners, hiring the least qualified management, and skimping on safety. Pretty obvious really. Nothing has changed with this criminal organization over the past 30 years.
NeoJamal
as long as their grid isn't in the black
Get Real
Vindication of Tepco's strategy - ¥100 shop fixes and 'one coin' tactics.
Maria
Those scuzzy bastards owe the people of Fukushima and environs millions, they continue to operate a dangerous station, yet they are concerned about the red and black. Filth.