Tokyo Electric Power Co (TEPCO) on Thursday outlined the standards to be used to pay compensation to small business owners for losses incurred due to the accident at the Fukushima Daiichi nuclear power plant on March 11.
TEPCO officials said that individual and small business owners located in the 20-kilometer no-go radiation zone, who had to close their operations, will receive the equivalent of last year's gross profit in compensation, NHK reported.
For companies that remained open but suffered a decrease in sales, TEPCO said it will pay an as-yet unspecified percentage of the losses, NHK said. TEPCO said it expects to compensate up to 300,000 farmers and small business owners and will begin payments by the end of October.
Meanwhile, Jiji Press reported that the utility will not fully compensate losses incurred by businesses in the tourism and hospitality industry in Fukushima, Ibaraki, Tochigi and Gunma prefectures.
In drawing up its guidelines, TEPCO used relevant data after the 1995 Great Hanshin Earthquake in Kobe and said that factors other than radiation fears have contributed to a decline in tourism revenue by an average 20% since March 11, Jiji reported.© Japan Today