In the context of the conflict between Russia and Ukraine, nine of Japan's top ten power supply enterprises suffered net losses between April and September, and the soaring prices of coal, liquefied natural gas and other energy sources hit these enterprises hard.
Reported that the sharp depreciation of the yen has also eroded the bottom line of the industry.
It is reported that 8 of the 10 power suppliers are expected to have net losses by March 2023. The project net losses of Central Power Company and Beilu Power Company were 130 billion yen and 90 billion yen respectively (100 yen is about 4.9 yuan - this online note). Tokyo Electric Powertek Company and Kyushu Electric Powertek Company did not release full year forecasts.
According to the report, although the major power companies plan to cope with the deteriorating business environment by reviewing the generation rate and improving enterprise efficiency, the situation is expected to remain grim.
It is reported that according to Japan's fuel cost adjustment system, Japanese power enterprises can pass on the rise in fuel prices to customers within a certain limit.
However, it is reported that the recent price surge has exceeded the upper limit, leading all the nine companies to bear their own costs. In Tokyo Electric Powertek Company, such costs are expected to reach about 75 billion yen throughout the year.
It is reported that in order to cope with this situation, Tokyo Electric Powertek Company and five other companies are considering raising the regulated electricity price of households in the spring of 2023 or later, but this requires government approval.
Post time: Nov-07-2022
