Japan to Set Up Tokyo Electric Oversight Panel

Tokyo (Jiji Press) - The Japanese government will set up a committee to oversee Tokyo Electric Power Co. <9501>, whose Fukushima No. 1 nuclear power plant is responsible for Japan's worst nuclear accident, informed sources told Jiji Press on Tuesday.
Through the move, the government hopes to strengthen its involvement in the reconstruction of the company and work to determine procedures for compensation payments to those affected by the crisis, the sources said.
Under the plan, the committee will be made up of lawyers, current or former business managers and other experts.
The government will call on Tokyo Electric Power to invite the head of the committee as a member of its board of directors, as the government is authorized to supervise power companies under a law governing the industry, the sources said.
Tokyo Electric Power will be asked to make preparations for voting to appoint the panel's head as board director at the firm's general shareholder meeting in June, the sources said.
Compensation from the nuclear crisis is likely to reach trillions of yen. Depending on the amount of compensation, the company may face serious financial problems.
The government and the company will decide how to share the costs and responsibilities before starting a full investigation into Tokyo Electric Power's financial conditions.
A detailed business revitalization plan will then be drawn up, including the disposal of more than 9 trillion yen in interest-bearing debts and a possible injection of public funds.
The committee will effectively compile and implement the revitalization plan. The government will consider enacting a special law to give the committee legal authority if necessary.
The government is also considering requesting Tokyo Electric Power scrap all part-time senior posts, such as consultants and advisers, to clarify its responsibility for the crisis and streamline its organization.