Japan parliament approves Tepco’s victim compensation plan

According to the plan, just approved in parliament, a new fund will be set up to pay damages to victims affected by the nuclear crisis.

Japan's other nuclear power operators will also make annual contributions to the fund.

However Fukushima Daiichi plant operator Tepco, which reported a loss of $15bn (£9.2bn) earlier this year, may have to pay more than $100bn in compensation.

"The fact they are going to start to pay out compensation is good news as money will be pumped into the Japanese economy," said Naomi Fink of securities and investment banking firm Jefferies.

The Fukushima Daiichi nuclear crisis saw almost 80,000 people being relocated from areas around the plant. The crisis has not only hit individuals but also hurt businesses in the area. As a result claims are expected to run into billions of dollars.

Analysts said that while the government has approved the plan for to pay compensation to the victims, the source of funding will be the key.

"It is going to be a lot more important to find out exactly how the funding is going to be done," said Fink.

"The general feeling is that you can't rely on debt to fund this and thus a rise in utility fees is likely to be the way out," she added.

However she warned that a rise in electricity charges will increase household expenses and have a negative effect on consumer demand.