Japan’s government has approved a 1 trillion yen ($12.55 billion) bailout for Tokyo Electric Power Co. (TEPCO), operator of the Fukushima nuclear plant.
“Without the state funds, [Tepco] cannot provide a stable supply of electricity and pay for compensation and decommissioning costs,” said Japanese industry minister Yukio Edano, who approved the takeover plan, adding that he hopes the company will work to win back public trust.
The move, which was expected, is part of a restructuring plan approved Wednesday. In exchange, TEPCO has announced its new management and pledged to cut more than 3.37 trillion yen ($42 billion) in costs over 10 years through fiscal 2021.
Over the weekend, Japan shut down its last nuclear reactor, leaving the country without nuclear power for the first time over 40 years.