Japanese power plant operator seeks government help for compensation payments

Tepco said it had presented a formal written request to economy minister Banri Kaieda on Tuesday. The request is intended to assist with the financial fallout from the company's Fukushima Daiichi power plant which was heavily damaged in the deadly March earthquake.

Total compensation claims are not yet known, but analysts say they may be more than $100bn (£61bn). They can't be allowed to face bankruptcy," said Penn Bowers, an analyst at CLSA in Tokyo. "I think everyone understands they can't be allowed to fail."

Tepco is Japan's biggest power utility. The areas that it serves account for 33% of the economy. Besides paying compensation, Tepco faces billions of dollars in extra fuel costs, after it shut down reactors at Fukushima Daiichi.

Engineers are still struggling to contain damage at the facility in northeastern Japan.

The government of Prime Minister Naoto Kan is now under pressure to review Japan's energy policy, which has been heavily dependent on nuclear power.

Over the past few weeks, Tepco, its creditors and the government have been trying to create a plan that would allow the power utility to compensate victims of the nuclear crisis.

On Tuesday, Japan's Finance Minister Yoshihiko Noda hinted that the government would give Tepco some form of support. "Basically, Tepco is primarily responsible for compensation but the government will ensure that those who are affected can be compensated," the minister said after a cabinet meeting.

He added that there were different ways the state could help Tepco and ensure support was provided, however he did not explain what those methods might be.

Tepco has already started making compensation payments to residents near the Fukushima Daiichi plant after residents were forced to evacuate when radiation started to leak from the reactor.

Shares in Tepco have plunged since the 11 March earthquake and subsequent tsunami.

Japanese media has reported that Tepco may have to raise electricity prices in order to help pay for payments.