Chubu Electric Power Group Report 2021(Integrated Report)
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due to such factors as uctuations in interest rates and therefore our nancial standing, operating results and cash ow could potentially be affected.(7) Suspension of operation of nuclear power generation facilitiesThe company has suspended operation of all reactors at the Hamaoka Nuclear Power Station. Based on the new regulatory standards, the company has currently been implementing countermeasures steadily, while undergoing the Nuclear Regulation Authority’s review to verify compliance with the new regulatory standards for Units 3 and 4. The company will strengthen internal systems to take action in response to reviews being conducted, and allow early conrmation that the power station conforms to the new regulations. The major safety enhancement measures at Unit 4, related to the tsunami/earthquake countermeasures or severe accident countermeasures that have been planned after the accident at the Fukushima Daiichi Nuclear Power Station, was mostly completed. In the future as well, any additional equipment counterplan in response to the review etc. should be imple-mented at the earliest time possible. After Unit 4, efforts will be made to implement the countermeasures in Unit 3 based on the new regulatory standards. In parallel with specifying the method for recovery from the sea-water inow in Unit 5, countermea-sures based on the new regulatory standards will be examined, and preparations will be made for applying for the examination for verication of conformance. Moreover, on site response focusing on the inside of the power station, such as strengthening the on-site response capabilities through education/training or by streamlining the emergency preparedness system, will continue, and in addition, efforts will be made to enhance the offsite response in prepara-tion for nuclear disaster in the areas around the power station, by strengthening cooperation with the national and local govern-ments, directed towards enhancing the effectiveness of emer-gency response including the evacuation of residents. Since operation is suspended for all reactors at the Hamaoka Nuclear Power Station, the Chubu Electric Power Group is providing electricity using thermal power sources as an alterna-tive. This will substantially increase power procurement costs, which coupled with other factors, is likely to exert an inuence on our nancial standing, operating results, and cash ow. Depending on the continuation of the suspension of opera-tion of the Hamaoka Nuclear Power Station to comply with the new regulatory standards or the suspension of operation of nuclear power generation facilities of other companies from which the Chubu Electric Power Group receives power supply, our nancial standing, operating results, and cash ow could potentially be affected.(8) Nuclear power back-end costs, etc.The back-end business of nuclear power takes an extremely long time period and has many uncertainties. Rules set by the govern-ment have reduced such uncertainties, but the costs of nuclear fuel cycles, including back-end costs, may vary depending on regulatory reform like changes in estimates of future expenses (mandated and voluntary) and the operating status of reprocess-ing facilities. As a result, our nancial standing, operating results, and cash ow could potentially be affected.(9) Large-scale natural disasters and other disastersThe business activities of the Chubu Electric Power Group are exposed to such risks as large-scale natural disasters, such as Nankai Trough earthquake and powerful typhoon, armed attack, terrorism, outbreak of an infectious disease, and accident. To prepare for the occurrence of such an event, the Chubu Electric Power Group has formulated a business continuity plan (BCP), is implementing precautionary measures including the formation, maintenance, and operation of facilities, and improving operating structures and conducting drills to cope with the occurrence of any such event. Most recently, in view of the lessons learned from typhoon disasters and based on our action plan, we are working to strengthen the facility recovery capability by improving various recovery support systems, to enhance the functionality of information offering apps, to strengthen the information offering capability to our customers by refurbishing our website, and to strengthen coordination with local governments and other electric power companies. In addition, our efforts to strengthen resilience, which are made in coordination with local govern-ments and other parties concerned, include further acceleration of trimming and culling of trees in advance and the elimination of utility poles for the preventive maintenance and cooperation in the area of ood control in anticipation of potential ood of dams used for hydroelectric power generation. However, if any disruption of supply or destruction of facili-ties occurs due to a large-scale natural disaster, armed attack, terrorism, outbreak of an infectious disease, accident, and the like, our nancial standing, operating results, and cash ow could potentially be affected depending on the magnitude of damage.(10) Spread of new coronavirus infectionIn response to the outbreak of new coronavirus infection, the Chubu Electric Power Group, under the principle of maintaining stable energy supply and service levels while prioritizing the safety and health of its employees and their family members, partners, and customers, is working to prevent infection and to secure backup staff in the event of emergency through such measures as the maximum use of working from home, ensuring staggered commuting under a extime system, and the use of unmanned facilities as satellite ofces. We will further accelerate the development and provision of new services by way of, for example, Community Support Infrastructure, to resolve social issues, in due consideration of signicantly changing social structures and values and behavioral patterns of individuals that include the permeation of new lifestyles such as new living styles and workstyles accompanying the spread of coronavirus (COVID-19). However, if the effect of the new coronavirus infection (COVID-19) expands further or is prolonged or if the Chubu Electric Power Group is unable to adequately anticipate changes in the social structure, our nancial standing, operating results and cash ow could potentially be affected.(11) Information security (Economic security, infor-mation management, etc.)For the purpose of assuring a stable supply of energy, which is an important infrastructure, in order to address risks of power supply disruption or information leakage due to threats such as a cyberat-tack, the Chubu Electric Power Group strengthens its governance system, pushes forward with information sharing and analysis in cooperation with other business operators and organization concerned through JE-ISAC and other forums, and is implementing various security measures and drills on an ongoing basis. To ensure that personal information (including Specic Personal Information) and other types of information are man-aged properly, we have established a department dedicated to information management, established necessary internal regula-tions, and provides training and awareness-raising programs to employees, among other initiatives, based on related laws and regulations such as the Personal Information Protection Law. In addition, we will take every measure to further assure security by building a more-advanced governance system, identifying and eliminating vulnerabilities in our IT systems, and strengthening operational rules through risk assessment and the analysis of assessment results. However, if a cyberattack, an IT system deciency or an information leakage occurs and we incur direct expenses to cope with it or suffer from a decline in social credibility as a result, our nancial standing, operating results, and cash ow could poten-tially be affected.(12) ComplianceThe Chubu Electric Power Group strives for strict compliance by establishing the “Chubu Electric Power Group Basic Compliance Policy,” which indicates a basic policy and principles of action related to compliance with laws, regulations, and social rules, and has established the “Chubu Electric Power Group Anti-Bribery and Anti-Corruption Policy” and the “Guidelines on Giving and Receiving Money and Other Items of Value” in 2019 to strengthen efforts to ensure compliance. Under these circumstances, on April 13, 2021, Chubu Electric Power Co., Inc. and Chubu Electric Power Miraiz Co., Ltd. underwent on-site inspections by the Japan Fair Trade Commission on a suspicion of violating the Antimonopoly Act regarding the supply of special high-voltage power and high-voltage power in the Chubu region as well as the supply of low-voltage power and city gas in the Chubu region. We take this fact seriously and are fully cooperating with the Commission’s investigation. The Chubu Electric Power Group will continue to make incessant efforts to ensure full compliance by evaluating the situation on an ongoing basis and fullling its accountability based on the results of such evaluation. However, if any event against compliance occurs within or in connection with the Group, the reputation of the Group may be damaged and our nancial standing, operating results, and cash ow could potentially be affected.86Chubu Electric Power Group Report 2021Top CommitmentValue CreationClimate ChangeStrategyBusiness ActivitiesGovernanceHuman ResourcesFinancial / Corporate DataBusiness and Other Risks

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