The Japanese government has approved Tokyo Electric Power Company Holdings' new business turnaround plan, targeting ¥3.1 trillion ($20.2 billion) in cost cuts over 10 years starting from fiscal 2025. The measures address massive expenses from the 2011 Fukushima No. 1 nuclear meltdown, achieved via business streamlining, reduced investments, and asset sales. Tepco expects to return to profitability next year, assuming a reactor restart.
On January 26, 2026, the Japanese government approved Tokyo Electric Power Company Holdings' (Tepco) new 10-year business turnaround plan, which projects ¥3.1 trillion ($20.2 billion) in cost reductions from fiscal 2025 through the year ending March 2035. These savings will come from streamlining operations, cutting investments, and selling assets, including about ¥200 billion worth of shares and real estate within three years.
Tepco is also seeking partnerships to attract external capital, aiming to fund investments amid growing electricity demand from data centers. The utility continues to grapple with enormous costs tied to compensation payouts and reactor decommissioning after the 2011 triple meltdown at the Fukushima No. 1 nuclear power plant.
The plan's earnings forecast shows a net loss of ¥739.3 billion for the current fiscal year ending in March. However, it anticipates a return to profitability next year with ¥256 billion in net profit, based on the restart of the No. 6 reactor at the Kashiwazaki-Kariwa plant in Niigata Prefecture. By the final year ending March 2035, Tepco projects ¥299.8 billion in net profit.
Hiroya Masuda, acting chair of the management committee at the state-backed Nuclear Damage Compensation and Decommissioning Facilitation— Tepco's largest shareholder—said at a news conference: “The plan will serve as a starting point for Tepco, now in an extremely difficult situation, to steadily push ahead with reforms in order to fulfill its responsibilities to Fukushima.”
