Reduction of Executive Compensation and Instructions to Directors

Chubu Electric Power Co., Inc. (President: Kingo Hayashi, "Chubu Electric Power") received a surcharge payment order and Chubu Electric Power Miraiz Co., Inc. (President: Shinya Otani, "Miraiz") received a cease and desist order and a surcharge payment order, respectively from the Japan Fair Trade Commission ("JFTC") under the Antimonopoly Act today in connection with the supply of city gas to large-volume customers in the Chubu area.
Also, Miraiz received a warning concerning the city gas supply for residential use in the Chubu area, and Miraiz and its subsidiary, Cenergy Co. (President: Minoru Yasui), received a warning concerning the supply of liquefied natural gas in Aichi, Gifu, and Mie prefectures respectively from JFTC.(Notified today)

Chubu Electric Power and Miraiz have violated the Antimonopoly Act, thereby undermining the trust of its customers, shareholders, local communities, business partners, and other stakeholders, and causing inconvenience and concern. Taking this into consideration, we hereby announce that the following reductions in executive compensation, etc., were resolved at the respective Board of Directors meetings.

Notice

1. Reduction of executive compensation

2. Instructions for thorough prevention of recurrence

To ensure that they never receive such an order or warning again, all directors are instructed to thoroughly prevent the recurrence of similar cases.
(Subject executives)
  Chubu Electric Power: All directors
  Miraiz: All directors