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Weekly Post -April 13 (p 44 - 47)“TEPCO’s Secret Discount Offered to Only Major Companies”

April 2, 2012
Tokyo Electric Power Company

The April 13 issue of “Weekly Post” published an article stating that “TEPCO favors major companies they have close relations with and discounts their electricity charges.” The facts are as follows:

- As for the customers in the deregulated sector, a prepared electricity tariff will be proposed taking into account their electricity usage conditions. The assertion that we provide special treatment to deregulated customers due to close business ties is unsubstantiated.

- Electricity is delivered to large manufactures or buildings (Special High-Voltage and High Voltage Demand) or to residential customers (low voltage demand) thorough transmission lines and substation facilities. We need to construct more facilities for delivering electricity to residential customers, resulting in higher electricity charges from a cost perspective.

- In accordance with the ordinance issued by the Ministry of Economy, Trade and Industry (METI), we calculate the electricity tariffs for regulated (residential) customers by including the necessary costs for electricity, a process which requires notification to and the approval of the METI Minister. Moreover, the so-called “3-step Incremental Charge” was introduced in Japan per the discussion held at the national council concerning energy conservation measures.

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