Tokyo Electric Power Co. (9501.TO) has decided to deposit Y120 billion with the government in place of insurance coverage, after finding it difficult to extend an insurance contract to cover the crippled Fukushima Daiichi nuclear power plant, sources close to the government said Tuesday, Kyodo News reported.

Tokyo Electric had sought to reach an agreement with a foreign insurer because a group of 23 Japanese insurance companies refused to extend the utility's existing contract beyond the expiration date of Sunday, amid concern that the Fukushima Daiichi plant could face far greater accident risks than other plants such as through the decommissioning process.

The utility known as TEPCO has failed to secure consent from the science ministry, in charge of nuclear power programs, over the terms of the insurance contract for compensation, forcing the power company to put up a deposit, typically resulting in a heavier financial burden than an insurance contract.

Διαβάστε ακόμα