TEPCO’s Restructuring Plan: Develop Business Partnership Plans for Fukushima N-accident Recovery

Editorial

16:14 JST, February 4, 2026

Tokyo Electric Power Company Holdings, Inc.’s business restructuring continues to face a challenging path. Based on its new plan, TEPCO is urged to enhance its profitability, including through partnerships with companies in other industries, and advance the recovery from the 2011 accident at the Fukushima No. 1 nuclear power plant.

TEPCO has finalized a new restructuring plan, the Comprehensive Special Business Plan. This marks the fifth plan since the Great East Japan Earthquake.

TEPCO, which was effectively nationalized after the accident, bears the responsibility of covering the costs of compensation and decommissioning.

In the latest plan, the first revision in about 4½ years, it was decided to maintain the accident response framework. Of the about ¥23 trillion in accident-related costs, TEPCO will bear about ¥17 trillion, paying ¥500 billion annually.

However, nearly 15 years have passed since the disaster, and TEPCO’s financial situation remains severe. In reality, it is probably not easy to secure the necessary funds as planned. Without a clear vision, the firm’s responsibility for the recovery cannot be fulfilled.

The cornerstone for improving the balance sheet is restarting the Nos. 6 and 7 reactors at the Kashiwazaki-Kariwa nuclear power plant in Niigata Prefecture. This will reduce fuel costs for thermal power generation, with an expected annual profit increase of ¥100 billion per reactor.

However, the No. 6 reactor experienced a malfunction shortly after restarting in January for the first time in about 14 years, forcing it to shut down again. TEPCO is urged to prioritize safety and establish a clear timeline for resuming commercial operation as soon as possible.

TEPCO will also implement cost reductions totaling ¥3.1 trillion over the 10-year period from fiscal 2025 to fiscal 2034. It has also announced a policy to sell about ¥200 billion worth of assets within three years.

To drive growth, TEPCO will invest a total of ¥7 trillion in transmission and distribution operations. TEPCO’s service area accounts for 30% of Japan’s electricity demand, forming the core of the nation’s economy and industrial competitiveness. An aggressive strategy is essential.

Through these measures, TEPCO aims to secure annual profits exceeding ¥300 billion by the first half of the 2030s while bearing accident-related costs.

However, limitations have become apparent in the approach of gradually advancing the rationalization process. It is also unavoidable that the decommissioning costs for the Fukushima plant will swell beyond ¥8 trillion. Accelerating reforms through capital and business alliances with external companies will become crucial.

TEPCO has so far integrated its thermal power generation division with Chubu Electric Power Co. to establish JERA Co., thereby enhancing its profitability. Beyond that, its achievements have been limited.

TEPCO received government approval for its restructuring plan late last month and began soliciting partner companies this month.

With the proliferation of generative artificial intelligence, demand for data center services is exploding. Partnerships with telecommunications companies and others are conceivable.

Electricity demand is also expected to increase. TEPCO should consider diverse options, including collaboration with the electrical industry that handles transmission and distribution facilities and power generation equipment.

(From The Yomiuri Shimbun, Feb. 4, 2026)