Japan sets up compensation plan for plant operator

The scheme involves establishing a fund financed by both public money and contributions from utilities that will provide financial support to Tokyo Electric Power Co., which expects to face a deluge of damage claims in the wake of the worst nuclear accident since Chernobyl in 1986.

Also Friday, the operator of the Hamaoka nuclear power plant in central Japan began the process of shutting down its reactors as part of an agreement with the government to temporarily suspend operations until it strengthens tsunami protections.

The government will fund the new compensation scheme with special bonds, though it did not say the amount it expects to issue, it said in a statement. The plan must still be made into a bill and be approved by parliament before taking effect.