Chubu Electric Power Co.,Inc. | May 2016 Regular Press Conference : President Katsuno's Message - Key Point of President's Regular Press Conference (2016)

Key Point of President's Regular Press Conference (2016) May 2016 Regular Press Conference : President Katsuno's Message

June 7, 2016

Chubu Electric Power Co.,Inc.

  • First of all, I would like to talk about the Ise-Shima Summit that was convened in Kashiko Island, Mie Prefecture.
  • Chubu Electric Power took every possible step to supply electricity in a stable manner for the Summit, as observed in last August’s establishment of our Ise-Shima Summit Assistance Headquarters where I served as General Manager.
  • While the Summit was underway, Chubu Electric Power arranged a roughly 500-member, 24-hour special security system to prepare for emergencies, and thereby made efforts to reliably supply power to the Summit venues and other relevant facilities.
  • Chubu Electric Power is both relieved and profoundly pleased that the Summit yielded significant outcomes and reached a successful conclusion.
  • We are also deeply grateful for how the media, including members present today and from around the world, had internationally shared Mie Prefecture’s attractions along with results of the Summit.
  • Today I will be discussing the following three matters:
    • Looking back on the two months since entering full power retail deregulation
    • Inauguration ceremony for the Tokuyama Hydroelectric Power Station
    • The 100th edition of “KORYU,” a local information magazine

Looking back on the two months since entering full power retail deregulation

(Nearly 880,000 new rate menu applications in the Chubu area)

  • I begin by looking back on the two months since entering full power retail deregulation this April.
  • In an effort to encourage Chubu area customers to continuously choose our company, we prepared cost-effective, readily understandable new rate menus.
  • Moreover, we started providing services with high added value that are both instrumental in and cater to the needs of customers; examples include expanding our business partners for the KatEne point system and offering a service that supports lifestyles.
  • Chubu Electric Power’s partner companies have reached 17.
  • We are informing our new rate menus and services to a wide array of customers by employing such tools as the “CHUBU DENRYOKU HAJIMERU BU” commercial, KatEne, fliers for meter inspections, and direct mail.
  • We are seeing a positive response for our initiatives, given how new menu applicants marked approximately 880,000 as of June 1.

(Exploring new services for Chubu area customers)

  • Meanwhile, Chubu area customers have, to some extent, ended their contract with us switched to gas utilities or other companies.
  • Given that a number of retail utilities have started providing multiple rate menus and services at the same time, customers are experiencing difficulty in comparing the offerings. This presumably is creating a cautious mood amongst many customers, and as a consequence, Chubu Electric Power is expecting competitions to intensify.
  • Chubu Electric Power would like to continue to steadfastly identify customer needs and offer services with high added value, and in turn, outperform competitors by achieving customers’ recognition in a comprehensive manner based on quality, price, and services.
  • Under the lead of the Sales Company President, we have, since April, been swiftly carrying forward considerations on a new service that addresses customers’ requests.
  • Details of this new service tailored to Chubu area customers will be announced after they are finalized.

(Power sales in the Tokyo metropolitan area)

  • I now turn to power sales in the Tokyo metropolitan area.
  • Given the large market size of the Tokyo metropolitan area, we see this region as an appealing business platform with high potentials for growth, and broadening the scope of our business in this area is a critical sales strategy for Chubu Electric Power.
  • However, our presence in the Tokyo metropolitan area is limited. This is why we have been rolling out our sales initiatives in this region through multiple channels, including direct marketing and collaborations with partner companies from various industries.
  • More specifically, our sales channels include:
    • The “KatEne plan,” in which Chubu Electric Power markets directly
    • The “Chubu Electric Power KatEne for BIGLOBE,” which was jointly developed with BIGLOBE
    • Supplying wholesale electricity to 11 city gas companies
  • Chubu Electric Power’s immediate goal is to acquire 100,000 customer contract quantities (i.e. 150,000 kW) in the Tokyo metropolitan area.
  • To achieve this goal at the earliest timing possible, we are now starting to explore rate menus for the Tokyo metropolitan area that would offer benefits to a greater number of customers.
  • Please look forward to our new undertakings in the Tokyo metropolitan area; we plan to announce details as soon as they are finalized.

Inauguration ceremony for the Tokuyama Hydroelectric Power Station

  • I would now like to move on to the inauguration ceremony for the Tokuyama Hydroelectric Power Station.
  • As previously announced, Chubu Electric Power will be hosting an inauguration ceremony for the Tokuyama Hydroelectric Power Station tomorrow, which I will also be attending.
  • The Station’s maximum power with Units 1 and 2 combined would add up to 161.9 MW. Besides our pumped storage power stations, this will make Tokuyama Station one of our largest general hydroelectric power stations.
  • Constructions for the Station commenced on October 2009, and completed after nearly six and a half years.
  • I take this opportunity to once again offer our profound gratitude to the understanding and cooperation of Ibigawa Town residents and other local citizens, as well as relevant parties.
  • We plan to invite press members to observe the inauguration ceremony and the Station’s generator installed 70 meters underground.
  • The Tokuyama Hydroelectric Power Station will be operated and controlled on an unmanned basis, and future opportunities to collect first-hand information on the Station’s internals will therefore be limited. We encourage you to visit the event tomorrow if you can afford the time.

(Summary)

  • Hydroelectric power is an energy fully produced within Japan, and along with its eco-friendly features, its advantage is that it promises a stable amount of power.
  • Chubu Electric Power is planning to start the commercial operation of Nyukawa Hydroelectric Power Station (350kW) in Takayama City late this month. Likewise, preparations are ongoing for the constructions of Shin-Okuizumi Hydroelectric Power Station (290kW) in Shizuoka City and for Achi Village’s Seinaiji Hydroelectric Power Station (5,600kW).
  • Chubu Electric Power will continue to join forces with Group Companies to actively develop such renewable energy as hydropower generation.

The 100th edition of “KORYU,” a local information magazine

  • I would now like to move on to “KORYU,” a local information magazine.
  • KORYU is a quarterly magazine that shares topics including the connection between daily life and energy, must-see locations and active individuals in the Chubu region, and information that are instrumental to daily life.
  • This is a long-standing public relations magazine with its first publication dating back to July 1979. After 37 years from its establishment, the edition on the 15th of this month marks the 100th issue.
  • The concept behind the launch of this magazine was to serve as a modest means of support for the local culture. Its initial focus was on culture and technology, but after undergoing gradual updates over time, today its emphasis is on sharing information related to daily life.
  • The magazine’s female editing staff takes advantage of their perspectives to compile topics conducive to life, which attract keen interest from female customers. This has been resulting in a large customer-based readership, primarily consisting homemakers.
  • We currently deliver around 40,000 copies to the houses of subscribers, and also send every issue to nearly 300 libraries in five Chubu area prefectures.
  • Chubu Electric Power regards KORYU as a key tool that enables us to bond with local residents and confirm customer needs, and its significance is further intensifying.
  • Chubu Electric Power regards KORYU as a key tool that enables us to bond with local residents and confirm customer needs, and its significance is further intensifying.