On June 26th, 2008, The Tokyo Electric Power Company Incorporated (TEPCO)
announced that it has decided to revise the electricity tariff and transmission
service tariff (wheeling charge) by around September 2008.
Although our last revision was in April 2006, the sharp rise in fuel prices
and the shutdown of the Kashiwazaki-Kariwa Nuclear Power Station caused by
the Niigata Chuetsu-Oki Earthquake greatly increased thermal power generation
costs. Meanwhile, companywide cost reductions have lead to a decrease in
In response to this situation, we came to the conclusion that the previous
calculation of the electricity and transmission service tariffs should be
Regarding the electricity tariff, while the facility-related expenses have
decreased, due to the rise of fuel prices the expenses have substantially
increased. However, by integrating future streamlining initiatives, we expect
that the revised electricity tariff as of September will be at the same level
of the former price as reflected in the fuel cost adjustment.
Through this revision, average fuel prices will be calculated based on the
quarterly national average customs statistics price for January to March 2009.
However, regarding the electricity tariff for October to December 2008, despite
the fluctuation that will occur in the quarterly national average customs
statistics price for fuel from April to June 2008, fuel cost adjustment will
not be considered.
Regarding the transmission service tariff, resulting from our cost reduction
initiatives, the excess profit is expected in the balance of payments for
transmission service in FY2007.
On the basis of this projection, reducing the transmission service price is
going to be discussed.
We are currently preparing our decision and will make a detailed announcement
in a timely manner.