Chubu to receive emergency loan

24 June 2011

Chubu Electric Power Company will receive an emergency loan of up to ¥100 billion ($1.25 billion) to support rising fuel costs following the shutdown of its Hamaoka nuclear power plant, Banri Kaieda, minister for economy, trade and industry, has announced. According to a report from Japan's NHK news agency, Chubu could receive the loan - to be provided through the Development Bank of Japan - before the end of June. The company agreed in early May to shut down units 4 and 5, and not to restart unit 3 of its Hamaoka plant in Shizuoka prefecture, which is currently offline for regular inspections. Units 1 and 2 have already been permanently shut down. Chubu had been requested to do so by prime minister Naoto Kan, who said that analysis showed a high risk of a major earthquake and tsunami in the Tokai region within 30 years. The plant is currently bolstering its tsunami defences and is not expected to restart for several months. Chubu expects to incur costs of some ¥2500 ($31 billion) per year in fuel costs for replacement fossil power generation.

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