Wednesday, May 9, 2012

TEPCO nationalized in bailout

Touden (Toukyou Electric Power Co.; TEPCO) has given up controlling interest to the government in a huge, although not unexpected, bailout over losses since the 2011 disaster, the Fukushima Daiichi meltdowns and the mass shortfall of electric power generation.

The taxpayer fronts the whole rescue.

Anyone notice a writedown of existing shareholder valuations (more than just the market punishment, I mean)? Nope, me neither.

Moreover, residential power consumers are about to get hit with a 10%+ rate increase (or more, if no TEPCO nuclear generators are allowed back on line).

Anyone see a massive rush of orders for Natural Gas-fired generating facilities yet? Nope, me neither.

Somebody needs to go through Nagata-chou (the seat of the Japanese government bureaucracy) with a 2x4 in hand something motivational to get them to wake up and pay attention.


Will said...

This I can hardly believe. I can understand (but not agree with) the reflexive act of shutting down all nuclear power. I cannot understand the failure to at least try to replace that capacity.

Won't this lead directly to a huge migration of remaining industry to other countries?

L.Douglas Garrett said...


That is the entirely justified fear, yes.