ID :
350192
Fri, 12/05/2014 - 00:45
Auther :

TEPCO to Increase FY 2014 Cost Cuts by Over 250 B. Yen

Tokyo, Dec. 4 (Jiji Press)--Tokyo Electric Power Co. <9501> will likely be able to increase cost reductions in fiscal 2014 by more than 250 billion yen from the amount planned under its business reconstruction program approved by the Japanese government in January, it was learned Thursday. The program calls for cutting costs in the year ending in March 2015 by 570 billion yen. But TEPCO now believes that the amount of cost reductions will exceed the fiscal 2013 level of 820 billion yen on the back of its streamlining measures including a cut in fuel procurement costs, informed sources said. The company will come up with a new cost cut plan at a meeting including outside experts later this month, the sources said. In a bid to gain understanding for fresh funding from its creditor banks, TEPCO plans to explain to them that its restructuring efforts are paying off, the sources said. TEPCO faces heavy financial burdens due to compensation following the accident at its Fukushima No. 1 nuclear power plant knocked out by the March 2011 earthquake and tsunami, as well as higher costs for fuel for thermal power generation. END

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