Saturday, May 28

Japan utility head is back on nuclear crisis

TOKYO - the President of the Japanese utility which runs a tsunami devastated nuclear power plant came Friday after the largest financial losses in the company's history, saying that he was responsible for the ongoing crisis accept resignation had fallen out of favor.

Tokyo Electric Power Co. President Masataka Shimizu, criticized for its low-profile during the disaster early days, vowed that the utility do to bring his "highest continue to" the Fukushima Dai-Ichi course under control.


Fuel rods seem largely melted earthquake caused three reactors of the plant after the March 11 a tsunami, which set out, cooling systems – the world's worst nuclear crisis since Chernobyl. Leaking radiation called residents on evacuation of thousands, and the dangerous fight for the reactors will contain expected next year continue.


The crisis raised serious questions about the lax supervision, Japan's nuclear industry and to the country, plans needs to rely on nuclear power for half of its electricity scrap - up from his current one third.


, During a press conference in a traditional Japanese apology bow "I have shattered confidence of the public about nuclear power, and causing so many problems and fears of the people, am resignation," reporters Shimizu.


"I wanted to take management responsibility and bring a symbolic close," he said.


Shimizu's resignation was widely expected as heads of major Japanese company step-down responsibility for even minor scandals and problems are expected. He had in earlier calls for his resignation responds saying he needed to efforts, included stay the crisis on the right track.


Shimizu came under fire for disappears from the public eye when the problems at work first appeared, and then later check in in a hospital. TEPCO details of his posted never.


The company was criticised unprepared for the tsunami despite some scientific evidence, that earthquake-prone Japan with a wave of this size make be could. It has also for slow and not disclose information about the plant knocked problems.


Renewed security fears caused the Government, the Hamaokoa have nuclear power plant in Central Japan, a region shutter, where a major earthquake with almost 90 percent probability is expected in the next few decades.


TEPCO reported that its losses for the fiscal year March 2011 was ended up to 1.25 trillion yen ($ 15 billion) - one of the largest annual financial losses for Japan's corporate world. TEPCO had a profit of nearly 134 billion yen last financial year.


Total losses from the disaster are likely to be far greater, including compensation for the thousands of people forced from their homes to Fukushima Dai-Ichi and companies such as companies that say, products by radiation damaged were evacuated.


The company plans to secure his assets to more than 600 billion yen ($ 7.4 billion) sale at finance but acknowledged that it always still could assess not the amount of damage payments.


"We are facing a large influx of claims compensation, but we do not know their scale," Shimizu said.


The Quake and tsunami, the 24,000 people dead or missing, damaged plants, ports, and hundreds of suppliers. These two disasters, as well as the nuclear crisis have Japanese economy into a recession, data show suppressed Government, such as factory production and exports stagnate.


The TEPCO Board of directors promised to take no numbers, and other executives returns 40 to 60 percent of their salaries, the company said.


But TEPCO must also the costs for the solution of the problems in the reactors and restarting of other types of power plants, nuclear, covering power deficit are shoulder.


TEPCO scrapped a previous plan add two more reactors to the Fukushima Dai-Ichi.


The Government studied possible rescue operations, including the use of contributions from other utilities and TEPCO taxpayer money deal with the towering cost help.


Shimizu, 66, another company Executive, replace as President Toshio Nishizawa, 60, is.


"Our company one faces unprecedented crisis." I think I am a very heavy responsibility shoulders, "said Nishizawa."


President Tsunehisa Katsumata, 71, former President, a leading role since the crisis, in particular took while Shimizu was absent, stays on, in the apparent strive for continuity.


Shimizu said that he will remain as a consultant for an indefinite period without pay. The appointments are official after a General Assembly in June, according to TEPCO.


Moody's Japan has warned that it further downgrade could its debt rating for TEPCO junk bonds status if commercial banks refuse to extend the utility more credit. Earlier this month, Moody's lowered the rating by two notches to a level just above junk status.


Analysts say that the bowing and resignations in the world can fix the nuclear power plant.


"This is a very difficult task," said Mamoru Katou, an energy analyst at Tokai Tokyo Research, adding that doubts about the utility of promise grow to nine months supervised the work. "Nobody really knows."


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