search


Top > Measures towards reform > Actions for Management Streamlining > Actions for Management Streamlining (FY2012) > [Cost Reductions]Power purchase and fuel expenses (FY2012)

[Cost Reductions]Power purchase and fuel expenses (FY2012)

Result (¥ billion) Target (¥ billion)
FY2012 FY2013 Total of 10 years
(FY2012-2021)
100.4
(42.5)
23.5 198.6

*The amount provided in the parenthesis in FY 2012 results is the target amount.



Specific measures
Items Contents
Reduction of Fuel Prices (Unit Prices)
  • Fuel conversions of emergency power sources from light oil to cheap city gas.
  • Reduction of agency commissions for LNG imports
  • Reduction of fuel prices for newly installed power supply sources
Application of Efficient Power Sources
  • Cost reduction via streamlining of daily operations based on discussions with relevant parties In order to increase the availability factor of LNG fired thermal power plants whose costs are relatively low
  • Increase in amount of power received from cheaper power sources available from other companies'
Reduction of Power Purchase Expenses
  • Negotiate to reduce unit prices at the time of re-signing
  • Negotiate to have jointly owned thermal power companies and in-house power generation producers etc. reduce their fixed costs etc.
Utilizing the Japan Electric Power Exchange (JEPX)
  • Reduce fuel costs by purchasing cheaper power from JEPX
  • Increase power sales to other companies by selling power through JPEX
Reduction of Fuel Costs from a Mid-to-Long Term Perspective
  • In order to stabilize fuel procurement and minimize purchase costs, we will implement measures such as constructing and operating fuel facilities with outside parties, procuring fuels with outside parties, and diversifying procurement sources.

*The revise of electricity rate applied on May 11, 2012 was approved on July 25 in the same year after reflecting the instruction based on the assessment policy of the Ministry of Economy, Trade and Industry.
TEPCO considers further cost reduction based on the above instruction as well.

to TOP