Receipt of Opinion Hearing Notice from the Japan Fair Trade Commission and Record of Extraordinary Loss

Chubu Electric Power Co., Inc. (Representative Director and President: Kingo Hayashi; “Chubu Electric Power”) and Chubu Electric Power Miraiz Co., Inc. (Representative Director: Shinya Otani; “Chubu Electric Power Miraiz”) received an on-site inspection by the Japan Fair Trade Commission (“JFTC”) on October 5, 2021 for a possible violation of Japan’s Antimonopoly Act (unreasonable restraint of trade) as to the supply of special high-voltage and high-voltage electric power as well as city gas and other resources for commercial and industrial Chubu area customers. The two companies have since fully cooperated with the JFTC’s investigation.

Today, on the supply of city gas for commercial and industrial Chubu area customers, Chubu Electric Power received an opinion-hearing notice on the (draft) surcharge payment order that is based on the Antimonopoly Act, and Chubu Electric Power Miraiz received an opinion-hearing notice on the (draft) surcharge payment order and the (draft) cease-and-desist order from the JFTC (collectively “the notices”), respectively.

The two companies will carefully consider what actions to take from here on by carefully examining the content of the notices and receiving explanations about the content of and other factors related to the order that is to be issued by the JFTC.

In response to receiving the (draft) surcharge payment order and in adherence to accounting standards, the third-quarter consolidated accounting period of the fiscal year ending March 2024 is expected to record a 26-million-yen extraordinary loss as a provision for losses related to the Antimonopoly Act.

We apologize for the concerns we are causing among our customers, shareholders, local communities, business partners and other related parties.