Tepco may report net loss of $12.46 billion for 2010: report

By @ibtimes on

Tokyo Electric Power Co Inc (Tepco) <9501.T> will likely report a net loss of more than 1 trillion yen ($12.46 billion) for the last fiscal, hurt by charges resulting from the accident at its Fukushima Daiichi nuclear power plant in March, business daily Nikkei reported.

JP Morgan had estimated Tepco's compensation losses at 2 trillion yen in the financial year that began last month, while Bank of America-Merrill Lynch said the bill could reach $130 billion if the crisis drags on.

Tepco has estimated the cost of decommissioning the No. 1-4 reactors at the Fukushima site at 600 billion yen, and it plans to book the amount as an extraordinary loss for fiscal 2010, the daily said.

A new body will be formed to support the company. Tepco and other eight regional electric companies with nuclear reactors will contribute to the entity, Nikkei said.

The government will provide Tepco with 120 billion yen in support under an insurance program for nuclear accidents, the daily said.

The body will also make loans to Tepco and, if necessary, buy preferred shares in the utility. ($1 = 80.275 Japanese Yen)

(Reporting by Krishna N Das in Bangalore)

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