Tokyo Electric Power Co. said Friday it will pay an estimated 50 billion yen ($600 million) in provisional compensation to residents affected by the crippled nuclear power plant.
Tokyo Electric Power Co. said Friday it will pay an estimated 50 billion yen ($600 million) in provisional compensation to residents affected by the crippled nuclear power plant.
Eligible will be about 48,000 households within a 30-kilometer radius of the Fukushima No. 1 nuclear power plant who have either evacuated to other locations or stayed indoors in accordance with government orders.
The number of households is expected to exceed 50,000 if the expanded evacuation zone, which covers some areas outside of the 30-km radius, is included.
TEPCO will pay 1 million yen to each multiple-member household and 750,000 yen to a single-member household. It hopes to begin payments by the end of April.
The decision was made at the company's board meeting on Friday following a request for provisional payments from the government earlier in the day.
TEPCO President Masataka Shimizu on Friday apologized and explained details of the payments.
"I sincerely apologize for causing inconvenience and hardship, both psychologically and physically," Shimizu told a news conference.
Industry minister Banri Kaieda, who doubles as minister in charge of the compensation issue, said the government plans to have compensation promptly provided to farmers, fishermen and small businesses as well.
The provisional payments will be counted as part of the future compensation to be made based on the law concerning compensation for nuclear accidents.
They will help evacuees meet immediate financial needs because it will take time before the framework of legal compensation is finalized.
The legal compensation is estimated to be in the range of trillions of yen.
Some government officials have speculated that TEPCO might have to be brought under state control if it cannot shoulder the anticipated massive compensation bill.
Kaieda on Friday denied the possibility of nationalization, however.
"TEPCO will bear the primary responsibility for compensation payments," he told a news conference.
"The government will ensure that TEPCO will meet its responsibility for compensation based on its operational earnings while fulfilling its obligations to supply electricity. The government will provide support where (the company) falls short."
Kaieda acknowledged that other regional electric utilities may be asked to share compensation payments.