Chubu Electric Power Co.,Inc. | Reorganization effective as of April 1, 2018 - Press Releases(2017)

Press Release 2017

Reorganization effective as of April 1, 2018

November 28, 2017

Chubu Electric Power Co.,Inc.

To develop an autonomous business system that can flexibly and swiftly address changes in the energy business environment, Chubu Electric Power has decided entirely reorganize itself starting April 1, 2018. This initiative includes further transferring power generation, power transmission and distribution, and retail business functions to internal companies.

In April 2016, Chubu Electric Power introduced an internal company system into its power generation, power transmission and distribution, and retail businesses. Efforts have been underway to have each internal company operate their businesses autonomously, e.g. making flexible management decisions. Still, progress in the electric power system reform and other changes in the business environment surrounding Chubu Electric Power are expected to happen at an increasingly rapid pace.

By stepping up previous efforts, Chubu Electric Power plans to quickly develop a new business model that copes with changes in the business environment and create new value accordingly to stay ahead of the competition.

In view of the legal unbundling of the power transmission and distribution department, which is stipulated to take place by April 2020 under Japan’s Electricity Business Act, Chubu Electric Power will deliberate over spinning off its thermal power generation (note), power transmission and distribution, and retail business units.

(Note) Deliberations on spinning off Chubu Electric Power’s thermal power generation business have been previously announced in “Conclusion of Joint-Venture Agreement on Integration of Existing Thermal Power Generation Businesses” dated June 8, 2017 as well as through other means.

Overview of reorganization effective as of April 1, 2018

(1) Reorganization of company

Management functions of general affairs, personnel, accounting, purchasing & contracting, among others will be transferred to the internal companies.

Power Generation Company

・Establishment of General Affairs Department, Purchasing & Contracting Department
・Establishment of Plant Operation Center
・Discontinuance of Thermal Power Administration Center, establishment of Engineering Service Center

Power Network Company

・Establishment of General Affairs Department, Purchasing & Contracting Department
・Establishment of Offices (Note)

Customer Service & Sales Company

・Establishment of General Affairs Department
・Establishment of Demand-Supply Operation & Power Trading Division
・Establishment of Community Customer Service Division (Note)

(Note) Current Regional Offices will remain as local bases. Based on that fact, necessary functions will be transferred to the Power Network Company’s Office and Customer Service & Sales Company’s Community Customer Service Division. Customer Service Office and Field Maintenance Construction Office will be transferred to the Power Network Company.

(2) Reorganization of headquarters

Chubu Electric Power’s headquarters will be reorganized into the Corporate Division, Office, and Center, depending on their functions.