Tokyo Electric Power Co. should cut salaries by at least 30 percent instead of 20 percent for regular employees and 25 percent for management before trying to push an electricity rate hike on households, a Consumer Affairs Agency panel said Tuesday.
In compiling its final opinions on Tepco's planned rate hike for households, the panel also said the utility should not reflect the annual ¥48.7 billion cost to contain the disaster at the Fukushima No. 1 nuclear plant, including the processing of radioactive water, in the fees to be passed onto consumers because it has failed to provide a clear explanation of why this is necessary.
"Utilities can recover the costs of generating and distributing power as long as they are appropriately managed. The costs derived from the (Fukushima) accident, which was caused by improper management, should not be included," said a statement released by the panel, which mainly consists of representatives from consumer-related groups.