* Government working on plan to support Tepco-sources

* Government to set up fund to buy preferred shares-sources

* Tepco could face $24 bln in compensation losses-JP Morgan

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By Taro Fuse

TOKYO, April 21 (Reuters) – The Japanese government will
allow Tokyo Electric Power Co (Tepco), the operator of
the crippled Fukushima nuclear power plant, to remain a listed
company even after being saddled with an unknown amount for
compensation for crisis victims, sources said.

The government is now working on a plan to support the
troubled nuclear operator Tepco, which is expected to be
unveiled as early as next week, the people familiar with the
matter said.

The plan is made up with a scheme to set up a fund that
would buy preferred shares from Tepco, they said, asking not to
be identified because the information is not yet public.

“Regarding the compensation for those affected by the
nuclear power plant, we would like to go in line with the
government law for nuclear compensation. Also we want to act
appropriately based on the government guidance,” a Tepco
spokesman said.

Tepco, Asia’s largest
utility, has started making compensation payments to
affected residents and local governments near
F ukushima Daiichi plant, who were
forced to evacuate after the M arch 11
earthquake and tsunami caused radiation
leaks. But the power company has yet to
determine how much it will have to pay in
total.

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