Divestiture of TEPCO for reparation for the Fukushima nuclear accident–A path to vertical unbundling

Nobuhiro Hosoe and Makoto Tanaka

Energy Policy, 2012, vol. 51, issue C, 207-212

Abstract: The Fukushima Daiichi Nuclear Power Station held by Tokyo Electric Power Company (TEPCO) had a serious nuclear accident in March 2011. TEPCO's liability for the losses caused by this accident is speculated to reach several trillion yen. For this compensation, TEPCO is supposed to sell its assets, including those for its power business. Their sales are crucial for its solvency. We estimate the fundamental values of TEPCO's thermal plants by modeling their plant operation patterns based on spot market prices and fuel costs. Then, we discuss the implication of their divestiture for TEPCO's reparations in the context of the regulatory reforms as a radical path to unbundling, which has not yet been achieved due to the strong resistance from the incumbents.

Keywords: Fukushima nuclear accident; Power market reform; Unbundling (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421512007719
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:51:y:2012:i:c:p:207-212

DOI: 10.1016/j.enpol.2012.09.013

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().