Corporate Information

Press Release (Jul 25,2012)
Regarding Authorization of Electricity Rate Increase
On May 11, 2012, TEPCO applied to the Minister of Economy, Trade and Industry for authorization to revise the electricity supply provisions connected to the electricity rate increase. In accordance with the assessment guidelines suggested by the Ministry of Economy, Trade and Industry on July 20, we submitted the updated application for authorization to the Minister today, and the revise was authorized on the same day.
We also submitted the notification of the reviewed rates for Optional Supply Provisions which have been reviewed on the authorized revised rate cost to the Minister of Economy, Trade and Industry.

1. Effective day
  September 1, 2012

2. Revised units and raise rates

 The average electricity unit rate for general households and commercial customers such as stores and offices will be raised by 1.97 yen/kWh (8.46%).
(1) Average raise rate

(2) Raise rate by major contract type

 The tables below show the raise rates by contract type based on the electricity usage pattern (contracted capacity, usage, etc.):

< For general households >

3. Review on the rate menu
Based on the assessment guidelines, we reviewed the rate menus as shown below.
We also submitted the notification of the revised rates for Optional Supply Provisions, which needed to be reviewed in accordance with the authorized revised rate costs, to the Minister of Economy, Trade and Industry.

(1) Review on the 3-stage rate

The present rates for general households (Meter-Rate Lighting Menu) adopt a so-called 3-stage rate system in which unit rate rises with the increase of usage.
In the rate raise, by keeping the increased range of the 1st stage rate relatively smaller, the impact on essential electricity usage in lives such as lighting and refrigerators will be reduced. In addition, as the costs in the application were reduced based on the assessment guidelines, the raise range of the 2nd stage rate which is charged for average electricity usage was reviewed to be greater reduced from the rate in the application than the other stages, to alleviate the charge burden.

(2) Review on the unit rate of the Peak Shift Plan

As a rate menu that helps decrease electricity charge for customers who use a relatively large amount of electricity, the Peak-Controlled-Season-and-Time-Specific Lighting (hereinafter referred to as "Peak Shift Plan") is set since June 1, in which lower rates are set during the night time to help shift electricity use from peak hours to the day time/night time or from the day time to the night time.
In the review, aiming to help customers use the menu easier, the raise for the day time is decreased to a relatively smaller range.

(3) Other review on the Optional Supply Provisions

・ The application submitted on May 11, 2012 specified that new registration would be terminated on the effective day of the rate raise for each Optional Supply Provision of Time-Specific Lighting ["10-Hour Night Service"], Electric Kitchen Home Contract, and Night-Only Power Service II and the 5-hour connection equipment discount of each menu.
Among them, for the Time-Specific Lighting ["10-Hour Night Service"], new registration continues to be accepted to provide customers with a variety of options.
For the other services, new registration will be terminated on March 31, 2013 to set a sufficient public notification period. For customers who have already subscribed the menu option, they will continue to apply as a provisional measure.

・ The night-time thermal storage and the all electric houses discount for the Season-and-Time-Specific Lighting (Denka Jozu) will be reviewed to promote wider peak shift as a part of the whole lineup based on the assessment guidelines, as the specific rate menus are set in response to the future official introduction of smart meters.

"Major Optional Supply Provisions Menus" list

4. Announcement and communications to customers
TEPCO is committed to enhancing the system for communications and response to inquiries from customers using various media formats, to deliver specific and easy-to-understand information and explanation at the occasion of rate raise.

(1) Continued activities

1) We will carefully deliver information to customers using various media formats such as widely distributing announcements written on leaflets at the time of meter readings and posting detailed information on our homepage in a timely fashion.
2) We will explain the rate raise to each of the about 9,000 organizations (municipal governments, associations for medium and small companies, and consumer groups) that we visited to explain details of the application after May 11.
3) Detailed explanations will be provided to customers who made phone calls to us and whom we meet during site visit operations.

(2) New activities

1) The "Electricity Rate Inquiry Dial" will be newly opened to enhance the system for response to inquiries from customers.
2) Optimal menus will be recommended based on each customer's usage status in response to inquiries about the rate menus, and the estimated rate sheet will be submitted to the customer.
3) The function that provides the comparison of the total rate of Meter-Rate Lighting and Low-Voltage Power to the Omatome Plan will be added to the Electricity Rate Simulation on our homepage at the end of July. In the future, contents introducing optimal rate menus based on the rate estimate will also be posted.
4) From September 3 (for one month), the announcement to encourage estimation will be distributed at the time of meter readings to customers (with a contract of 50A or larger and an average monthly usage of 600kWh or more) who are highly likely to have benefits of the Peak Shift Plan and the Omatome Plan.

< Electricity Rate Inquiry Dial >
Tel: 0120-993-052
Service hours: Monday - Friday (excluding holidays) 9:00 - 19:00
              Saturday (excluding holidays) 9:00 - 17:00
* Inquiries from outside of our service areas will not be accepted.
* For customers who can't access to the above dial, contact the Customer Center written on the "Electricity usage report (Meter slip)" or other announcements.
* Use correct phone number for inquiries.

5. Review on the electricity rates in the deregulated section
(1) Review on the electricity rate in the deregulated section based on the authorization for the regulated section

Since last April, we requested and have been raising rates for customers in the deregulated section (customers of High-Voltage, +2.61 yen/kWh ((1) in the figure below) and customers of Special High-Voltage Service, +2.58 yen/kWh). Based on the authorization to revise electricity rates in the regulated section (general households and commercial customers such as stores and offices), the same contents are adopted and review was conducted to the rates in the deregulated section.
As a result, the electricity unit rate after the review (B in the figure below) is decided by deducting 0.25 yen ((2) in the figure below) from the raised rate in the deregulated section applied from April 2012 (including the Fuel Cost Adjustment Unit for June* ((3) in the figure below)).
* The review was conducted based on the fuel cost level at the time of application for rate raise in the regulated section (May 11, 2012), and the unit for June was used as the latest Fuel Adjustment Unit that was confirmed at that time.

[Customers for High-Voltage Servis]

(2) Change in the calculation standard of Fuel Cost Adjustment Unit

In the review, same as the regulated section, the base unit of the Fuel Cost Adjustment was changed , the variation range (upward and downward) of the Fuel Cost Adjustment Unit will be widened from before the review.

(3) Discount of the difference

○ For customers who concluded the contracts before August 31, 2012 with the raised rates applied from April, the difference born by the review (▲0.25 yen/kWh) and the discount unit offered to the early contractors will be refunded as discount in the electricity invoice for October 2012.

(4) Communication method to customers and check of intention

From today, details of the review will be communicated to all customers in the deregulated section through visit, mail of the document, and phone, to check each customer's intention regarding the rates after the review.

*If the contract is changed to the rate after the review, the contract period will not be changed.
*For customers who concluded the contracts with the rate before the increase in April, the raise during the contract period will not be applied and the present contract will continue until the contract expiration.

< Customers of Special High-Voltage and High-Voltage (500kW or larger) Services >
○Our staff will visit, individually inform the detail, and ask each customer's intention.

< Customers of High-Voltage (less than 500kW)  >
○As soon as it is ready (about mid August), outline of the review and request for contract will be sent in a written form to the addresses for monthly electricity rate invoice. In addition, the intention of each customer will also be asked by phone regarding to contract conclusion.
○During the period before checking the intention, the rate after the review will be applied for the invoices from September 1, 2012 to immediately reflect the contents of the review for customers who have paid the raised rate since April.
○For customers who wish to continue the raised rate applied since April as a result of the intention check of each customer, the electricity invoice with the raised rate will be sent separately.

6. Review on the Last Resort Service Provisions
TEPCO specifies in the Last Resort Service Provisions the rates used when we guarantee the supply in the exceptional cases that customers in the deregulated section don't reach the contract agreement with any operator. The rates were raised same as the standard menu rates for customers in the deregulated section. (Same as the past, the raise rates are equivalent to temporary electricity rates in the Electricity Supply and Demand Provisions.)

7. Review on the Wheeling Service Provisions
The rates charged when Power Producer and Supplier and Special Electric Utilities use the network of TEPCO will be revised from September 1. The notification of change in the Wheeling Service Provisions was submitted to the Minister of Economy, Trade and Industry today.
The revised wheeling service rates based on reviewed costs (Intra-Area Wheeling Service rates) are an average of 1.95 yen/kWh for Special High-Voltage Service, and an average of 3.81 yen/kWh for High-Voltage Service, rates decreased by 0.29 yen/kWh (12.95%) and 0.41 yen/kWh (9.72%), respectively, due to the cost reduction related to transmission facilities.

< Reference > Total Cost Specifications

(1) Preconditions

■ Cost accounting period: Three years from fiscal 2012 to 2014
■ Fuel cost ·Exchange rate 78.5 yen/dollar
                       ·Crude price 117.1 dollar/barrel
                       ·LNG price 860.5 dollar/ton
                       ·Coal price 145.9 dollar/ton
*The trade statistics price of the latest 3 month (from January to March 2012) as of the application day for authorization (May 11)

■ Nuclear power generation rate  18.8%
→ The rate is based on the assumed gradual operations resumption of Kashiwazaki Kariwa Nuclear Power Station from April 2013 during the three-year cost accounting period of the application predicated on receiving acceptance from local residents by ensuring future security and safety. Specifically, it is assumed that the operations of Units 1, 5, 6 and 7 of Kashiwazaki Kariwa Nuclear Power Station will be gradually resumed from fiscal 2013, and Units 3 and 4, from fiscal 2014. (The calculation of the nuclear power generation rate excludes the decommissioned operations of Units 1 to 4 of Fukushima Daiichi Nuclear Power Station)

■ Business reward rate  2.9 %

(2) Breakdown of total cost

The table below shows the comparison of the revised cost authorized to the old cost that formed the base of rates set in 2008 or the cost in the application. In accordance with the suggestion for correction based on the assessment guidelines, the cost reduction by 84.1 billion yen from the cost in the application (annual average from 2012 to 2014) was reflected in the revised cost.

< Major contents changed by the assessment>

< Reference 2 > Major rates

(1) General Supply Provisions

(2) Optional Supply Provisions

(3) Electricity Supply and Demand Provisions

(4) Wheeling Service Provisions

1) Intra-Area Wheeling Service

2) Imbalance Charge

Reference: Summary of the Authorized Electricity Rate (PDF 509KB)

*On July 26, 2012, we corrected the standard unit price by voltage from "before tax" to "after tax" on page 47.

The aforementioned Reference is only available in Japanese.
We apologize for any inconvenience this may cause.
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