The company's costs went up when it was forced to shut down 10 out of its 17 nuclear reactors due to failure to comply with required safety regulations and professional negligence on the part of some of its employees. In order to make the shortfall, it had to increase its dependence on its thermal-powered plants and, thus, doubled its fuel bill.
According to Japanese fund manager, Makoto Sakuma, "Delays in nuclear restarts will force Tokyo Electric to rely on thermal power generation, which costs the company more than nuclear power." Tokyo Electric president, Tsunehisa Katsumata, confirmed his company aims to complete safety checks on four out of the 10 closed reactors in the coming weeks.
The utility's group net income fell to US$640 million due to the costs of having to buy oil and natural gas. It is targeting to reach a profit of US$1.82 billion by the end of the fiscal year ending March 31.
