With the prices of fuel for thermal power generation soaring, the business performance of electric power companies has been deteriorating. Each company needs to make every possible effort to ensure that the stable supply of electricity is not affected.
Of the 10 major electric power companies, six, including Tokyo Electric Power Company Holdings Inc. and Chubu Electric Power Co., are expected to post net losses in their consolidated results for the business year ending March 2022. The net losses of TEPCO and Tohoku Electric Power Co. are estimated at 41 billion yen and 45 billion yen, respectively.
Under a government program, major power utilities are allowed to pass on the rising costs of fuel such as crude oil and liquefied natural gas (LNG) in electricity bills. However, it takes several months to pass on the rising costs in bills, and the earnings of the companies are pushed down in the interim period.
