Concerning Increase of Electricity Rates
October 29, 2013
Chubu Electric Power Co.,Inc.
Chubu Electric Power applied today with the Minister of Economy, Trade and Industry to increase our electricity rates.
Since the suspension of operations at all units of Hamaoka Nuclear Power Station in May 2011, our cost for thermal fuel has increased significantly. The entire Company has been working to bring costs down through efficient management, with no areas considered off limits, in order to maintain current electricity rates as long as possible.
However, our FY2013 earnings forecast suggests that, even after considering our cost-cutting efforts and twice revising our outlook upward, we must unfortunately project a consolidated ordinary loss of 100 billion yen and non-consolidated ordinary loss of 110 billion yen.
Additionally, since we do not expect Hamaoka Nuclear Power Station to resume operation in FY2014, Chubu Electric Power will necessarily face a loss in that year as well, in spite of our utmost efforts, which include lowering wages.
Given these circumstances, we regret to say that in order to continue our most important mission of providing a safe and stable supply of electric power, we have applied to increase electricity rates for customers in the regulated sector by an average of 4.95% starting April 01, 2014. For customers in the deregulated sector, we are seeking electricity rate increases averaging 8.44% from the same date.
All of us at Chubu Electric Power will keep striving for further efficiency, with no areas exempt from these efforts. We regret the inconvenience to our customers and ask for their continued understanding.