Key Point of President's Regular Press Conference

Key Point of President's Regular Press Conference

October 2014 Regular Press Conference : President Mizuno's Message

October 31, 2014
Chubu Electric Power Co.,Inc.

  • Today I would like to speak about the following three points.
    • FY 2014 Second Quarter Financial Results
    • Partial Revision of Work to be Performed for Enhanced Safety Measures related to Hamaoka Nuclear Power Station 
    • Supply and demand outlook this winter

FY 2014 Second Quarter Financial Results

  • First, I would like to talk about our FY2014 Second Quarter Financial Results.


  • Looking at consolidated sales, while the volume of power sold declined in our electricity business, we recorded a 158.6 billion yen increase in revenue against the same quarter last fiscal year, reaching sales of 1,526 billion yen, due to factors including an increase in lighting power charges resulting from increased fuel adjustment costs and electricity rates, as well as increased energy business sales in other areas.
  • In the area of consolidated ordinary profit (loss), while the cost of fuel increased due to a rise in fuel prices, factors including increased electricity rates and fuel cost adjustments saw an increase on our results, an ordinary income of 38.4 billion yen, an increase of 65.5 billion yen against the same quarter last fiscal year.


  • Next, turning to our non-consolidated financial results,
    Sales increased 155.1 billion yen year on year to 1,437.8 billion yen
    Operating income increased 83.1 billion yen year on year for a profit of 63.8 billion yen
    Ordinary income increased 62.8 billion yen year on year for a profit of 30.7 billion yen
    Net income for the quarter increased 58.7 billion yen year on year for a profit of 40.6 billion yen

(Earnings outlook for FY2014)

  • Next, let’s look at the earnings outlook for FY2014. 
  • The forecasted earnings values announced on July 31 have been corrected to reflect the latest performance trends, including the fluctuation of exchange rates and crude oil prices.
  • Looking at consolidated sales, while the volume of power sold declined, we expect an increase of 30 billion yen, reaching sales of 3,120 billion yen, due to factors such as an increase in the fuel cost adjustment amount and an increase in supportive supply to other companies. 
  • In the area of consolidated ordinary profit, while we are expecting the cost of fuel to increase due to a rise in fuel prices, we are leaving the ordinary income forecast of 30 billion yen as it stands when previously announced, in view of changes for efficiency in management.

(Progress of management efficiency)

  • With regard to management efficiency, a cost reduction of approximately 70 billion yen was factored in according to new efforts starting FY2014 and thereafter, viewing rate revisions. Currently, we are working against each and every business and expenditure toward this achievement.
  • As a maximum increase in efficiency of approximately 20 billion yen from the initial forecast can be expected, mainly in the area of fuel costs, we reflected this into the current earnings forecast.
  • As a major initiative, we expect to see the effect of efficiency in less expensive fuel procurement, such as economical LNG spot procurement and trade involving coal procurement based in Singapore, an area where Chubu Electric Power is ahead of other companies.
  • In addition to this, we have reduced fuel costs by increasing the operation rate of the highly efficient Shin-Nagoya Thermal Power Station Group No. 7 and No. 8 through efforts to shorten the periodic inspections and maintenance shutdowns of thermal power plants.
  • Chubu Electric Power will continue to rally its forces to practice efficient management so that a profitable goal can surely be achieved.

(FY2014 interim dividend)

  • Finally, with regards to the dividend forecast, although we are making efforts on a company-wide basis towards management efficiency along with the implementation of electricity rate increases toward improving our company's balance, in light of future balance fluctuation risks, further efforts are required. Also, as attempts to strengthen the impaired financial foundation are necessary, we are forced to omit the interim dividend for FY2014.
  • Although the year-end dividend is still considered as "pending," we would like to share it promptly after the stage where the medium-to-long-term performance and financial situation, including our company's performance for this fiscal year have been assessed.

Partial Revision of Work to be Performed for Enhanced Safety Measures related to Hamaoka Nuclear Power Station

  • Next, I would like to talk about Partial Revision of Work to be Performed for Enhanced
    Safety Measures related to Hamaoka Nuclear Power Station. 
  • In February, 2014, Chubu Electric Power filed an application for review of compliance with new regulatory requirements regarding Hamaoka Nuclear Power Station Unit 4. So far, there have been a total of 11 review meetings conducted by the Nuclear Regulation Authority. 
  • In order to properly grasp the examination contents of other companies' power plants preceding with their examinations and reflect the contents into our ongoing safety improvement measures, as a result of deliberations, we have decided to review a portion of the construction work related to the safety improvement measures for Unit 4 and strengthen measures.
  • For the construction review this time around, an environment will be prepared as a local correspondence direction center through "functional enhancements of the emergency response center, "in order to more rapidly and reliably perform site correspondence mainly for serious accidents by "securing a storage location and access route for portable equipment," and "fire protection measures."

(Extension of the construction period)

  • From a review conducted of this construction work, for safety improvement measures, the construction period is expected to take approximately 1 additional year, resulting in an expected completion of September 2016 for Unit 4 and September 2017 for Unit 3. 
  • Although there is a possibility a review of construction work and additional work will be necessary over the progress of the Unit 4 examination, by having an accurate understanding of the examination situation and the latest findings and taking necessary measures in advance, we are aiming for early completion of the construction work.
  • Nuclear power generation is an extremely important power source in Japan, and the Hamaoka Nuclear Power Station is an indispensable power source to Chubu Electric Power.
  • Chubu Electric Power is committed to continuing steady progress with measures for further enhancement of the safety of Hamaoka Nuclear Power Station. At the same time, we will also do everything in our power to provide detailed explanations of the content of those measures so as to gain the understanding of the local community and of society at large.

Power supply and demand for this winter

  • Last, I would like to talk about the "electric power supply and demand outlook this winter."
  • Today, a study group was held by the national government to discuss the supply and demand of electric power. There was a request for energy conservation this winter as well, although it does not involve numerical targets.

【Reference】 Period and times for energy conservation as requested by the government

Weekday 9:00 - 21:00
Monday, December 1, 2014 - Tuesday, March 31, 2015
(Except December 29, 30, 31, January 2)

  • As a detailed explanation regarding our supply and demand was released on October 1, details have been omitted from this release. With regard to the supply reserve margin, we expect to be able to ensure a goal of a stable reserve margin of 8%, in relation to the maximum power three-day average.
  • For this winter’s power supply and demand, we predict that customers will maintain electricity demand savings at the 550 MW level. However, we would like to request that our customers continue their efforts to conserve energy this winter, as they have been doing, without unreasonably affecting their daily activities.
  • That is all for me.

Go to the Top of the Page