Key Point of President's Regular Press Conference

Key Point of President's Regular Press Conference

December 2022 Regular Press Conference : President Hayashi's Message

December 20, 2022
Chubu Electric Power Co.,Inc.

  • First of all, I would like to talk about the receipt of the opinion hearing notice from the Japan Fair Trade Commission which may have been causing the public concern.
    On April 13 last year, the Japan Fair Trade Commission conducted an on-site inspection of Chubu Electric Power and Chubu Electric Power Miraiz on the supply of special high-voltage and high-voltage electric power in the Chubu area. We have been fully cooperating with the investigation.
    We take seriously the fact that we have received an opinion hearing notice regarding a draft cease and desist order and a draft surcharge payment order according to the Antimonopoly Act.
    Our business is supported by our customers, shareholders, local residents, business partners, and many other parties.
    We apologize for the concern this matter has caused to those parties concerned.
    The opinion hearing notice is part of the Japan Fair Trade Commission's investigation procedures, and the investigation is ongoing.
    We will carefully go through the opinion hearing notice and consider our response in light of the explanation of the draft order.

  • I will be discussing the following matters today:
    • Establishment of a new company dedicated to automatic meter reading
    • looking back on 2022 and our plans for the coming year

Establishment of a new company dedicated to automatic meter reading

  • Today, Chubu Electric Power together with Chubu Electric Power Grid decided to establish Chuden Telemetering LLC dedicated to automatic meter readings on February 1, 2023.
  • As the workforce shrinks and IoT technology advances, the energy infrastructure sector such as electricity, gas, and water need to reduce costs while providing more sophisticated meter readings and maintenance services. Services that use metering data also need to be expanded even further.
  • In response, Chubu Electric Power in April last year began offering telemetering services in the Chubu area that enables remote meter reading of gas and water consumption, as well as early detection of gas leaks and other problems, immediate cessation or restoration of supply.
  • This service is currently being used by 15 LP gas companies and around 100,000 households.
  • By establishing a company dedicated to telemetering services and accelerating in this area, we aim to grow our user base to 500,000 households, 5 times the current level, by 2025.
  • We also will develop new services such as the monitoring of the elderly and detection of frailty, a sign of Alzheimer’s disease.
  • The Chubu Electric Power Group will use the establishment of this new company as a jumping-off point to grow our telemeter service business and deliver new value to our customers.

Looking back on 2022

  • Next, I would like to reflect on 2022.
  • 2022 was a year in which we started working on our new goals outlined in the Medium Term Management Plan that we made this year, targeting the year 2025, the halfway point toward our Management Vision 2.0.
  • At the same time, it was a year of extremely difficult business conditions. Our profits shrank due to soaring fuel and wholesale electricity market prices in the wake of the War in Ukraine and we faced nationwide electricity supply and demand crunches.
  • We expect these tough conditions to continue into next year and beyond, and it was with great regret that Chubu Electric Power Miraiz in October decided to revise the standard rate menu for special and high-voltage customers in order to ensure the stable delivery of electricity.
  • The Group is currently in the process of carefully explaining to customers the background and details of the rate revision while doing our utmost to expand streamlining measures and provide services that will help reduce the burden on customers.
  • With regard to the supply and demand of electricity, we were able to provide a stable supply this summer thanks to the Group implementing all possible measures on both the supply and demand sides, as well as to the cooperation of our customers in saving electricity.
  • We expect to be able to secure the minimum reserve rate of 3% required for stable supply this winter as well. However, the Group will work to steadily operate and conduct maintenance on power plants, transmission and transformer equipment to ensure that the secured supply capacity will not be reduced.
  • We ask for our customers’ cooperation in saving electricity to an extent they feel comfortable and we appreciate your continued understanding and cooperation.

Next year’s plans

  • Next, I would like to talk about our plans for the coming year.

(Contributing to realizing a decarbonized society)

  • Currently, the Japanese government's GX Implementation Council is wrapping up discussions on realizing a stable energy supply and carbon neutrality.
  • The Chubu Electric Power Group has also pledged to contribute to the realization of a decarbonized society in the Management Vision 2.0 and Zero Emission Challenge 2050. We will continue to further promote decarbonization by expanding our renewable power sources and creating services that meet customers' needs.
  • With regard to the further expansion of renewable power sources, we are aiming to have more than 3.2 million kW of renewable power by around 2030, with current levels being around 730,000 kW.
  • In addition to developing new power sources such as hydropower, wind power, and biomass, we will continue to work on expanding our existing power plants and increasing their output. On the customer side, we will accelerate the launch of services such as off-site PPA that will help customers use more renewable energy.
  • With regard to services to meet our customers' needs, Chubu Electric Power Miraiz will assist customers in decarbonizing by providing CO2-free electricity and energy-saving solutions that we have honed over the years.
  • In order to maximally use nuclear power generation, a power source that plays a critical role in both stable supply and decarbonization, we will continue to do our utmost to cooperate in the new regulatory standards conformance review for Hamaoka Nuclear Power Station. We will aim to restart operations as soon as possible while putting safety and the understanding of local residents as the top priority.

(Expansion in new growth areas)

  • To realize the Chubu Electric Power Group’s Management Vision 2.0, we must increase profitability in the new growth areas.
  • Through strategic investment, the Group is making a concerted effort in developing:
    • Services to make life richer and more convenient for our customers
    • Global businesses that seek to realize a decarbonized society and strengthen the profit-making structure of the company
    • Resource circulation business that helps local communities use underused resources in their communities
  • As 2030, the target year for our Management Vision 2.0 comes closer, we believe next year’s challenge will be to further accelerate our initiatives in the new growth areas and establish the road toward further profit expansion.
  • The telemetering service announced today is part of our forward-looking initiatives. We will leverage our technological capabilities and our relationships with our customers to identify values that our customers and society are seeking and create new value that can only be provided by us.

(Human resources strategy)

  • We believe individual employees are the driving force of the company. They need to thrive for the Group to keep on supplying electricity stably in the long term and taking on new challenges in new business areas.
  • In this changing business environment, we will take the lead in creating an environment where a diverse workforce can challenge themselves and keep on growing.

(In conclusion)

  • We believe that the business environment surrounding the Group will remain tough in 2023. However, we will make steady progress in realizing our Management Vision 2.0 by achieving our unchanging mission and creating new value.

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