Application for Raising the Regulated Electricity Rates, etc.
January 23, 2023
Tokyo Electric Power Company Holdings, Inc.
TEPCO Energy Partner, Inc.
The TEPCO Group is streamlining management according to the Comprehensive Special Business Plan to provide a stable supply of electricity to our customers. However, with the recent global soaring of resource prices, the earnings structure of TEPCO Energy Partner (hereinafter TEPCO EP) has been worsening year by year, as expenses exceed revenue due to the sharp rise in fuel and wholesale electricity market prices that our streamlining efforts cannot keep up with. In light of this, after announcing the review of the extra high-voltage and high-voltage rate plans in September 2022, TEPCO EP had been considering the revision of all low-voltage rate including the one stipulated by the Specified Retail Supply Provisions (hereinafter, regulated rate) (as announced on November 1, 2022).
With the Fuel Cost, etc. Adjustment Unit Price for the regulated rates at the upper limit of its range and an increasing number of customers switching from retail electricity operators to TEPCO EP's regulated rate plan, the cost burden for TEPCO EP has increased further since then. The ordinary loss of TEPCO EP for FY2022 is expected to be 505 billion yen, the largest it has ever been. The regulated rates division which had been profitable as of FY2021 is expected to generate a final loss of approximately 160 billion yen in FY2022.
As such a situation could hinder a stable supply, this financial hardship cannot be overcome with streamlining management and other managerial efforts alone, TEPCO EP today, submitted an application to the Minister of Economy, Trade and Industry to raise the regulated rates by an average of 29.31%, starting on June 1, 2023*. The low-voltage liberalized rates will also be raised by an average of 5.28% from the same time. This was a difficult decision for us and we would like to sincerely ask for our customers' understanding for ensuring a stable supply of electricity.
The TEPCO Group will continue to thoroughly streamline management and provide a stable supply of electricity while also further enhancing our efforts to reduce the burden on customers by providing support for energy conservation and electricity savings.
* The revised regulated rates in the application may change as it is subject to approved officially by the METI minister after the government's review, etc. Depending on the approved regulated rates, revision rates for the low-voltage liberalized rates may also change.