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[Cost Reductions]Power purchase and fuel expenses

Result (¥ billion) Target (¥ billion)
FY2014 FY2015 Total of 10 years
40.5 762.2

*The amount provided in the parenthesis in FY 2014 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
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.
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'
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 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.

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