Tokyo Electric Power Company in Japan said it was restructuring the company, creating three businesses that continue with its 2014 separation of its nuclear businesses from its non-nuclear concerns.
As from 1 April 2016, Tepco said, the company will spin off its fuel and thermal power generation business into a company called TEPCO Fuel and Power, Incorporated. Its distribution and transmission business will become TEPCO Power Grid Incorporated. Its retail electricity business will be spun off as TEPCO Energy Partner Incorporated.
Tepco said it was making the major structural changes to survive in the post-Fukushima Daiichi reality. The new brand “signifies [the company’s] … determination to survive in the midst of competition while fulfilling its responsibilities for the Fukushima nuclear accident,” the company said.
“Japan’s electricity market is entering a period of dramatic change. Full liberalization of the electricity retail market is scheduled for April 2016, and the law requires separation of electricity transmission and distribution functions from the retail business in 2020.
“The changes in TEPCO’s company structure anticipate these changes and prepare it to succeed in the new, competitive environment, while serving its customers with a stable supply of electricity and full retention of its responsibilities not only for Fukushima but also for safety and reliability throughout its business,” the company said in a statement.
The company has already been effectively nationalized in the post-Fukushima era. The company’s 10-year plan allowed the government 51 percent of the company in exchange for $8 billion in government funding. Last year, in 2014, it restructured to form a separate division that would focus on decommissioning at the Fukushima Daiichi power plant where three reactors suffered meltdowns after a tsunami event that followed the March 11, 2011 Great East Japan Earthquake.
Source: Nuclear Street