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(March 31,2010 Update)

Top > Corporate Information > Investor Relations > Getting to Know TEPCO > The Nature of Electricity As a Product

The Nature of Electricity As a Product


Electricity differs from other products, in ways like the following.

Does not store well

Large-scale "warehousing" of electricity is not possible. Since electricity is consumed as soon as it is produced, supply has to be matched to demand at every moment. Enormous facilities are required to keep up with the fluctuations at different times of the day and different seasons.

For this reason, the electric power business is a typical example of a capital-intensive industry, requiring a huge amount of fixed assets.

Cannot be carried around

Different from other products, electricity cannot be carried around as one likes. After being produced (generated) at a power station, it requires power transmission lines, substations, service lines and other facilities (called power distribution facilities) for delivery to customers.

No real alternatives

Electricity cannot be readily substituted for by other forms of energy.

Electricity is used for lighting, heating, and motive power, for example.

Although oil or gas can be partly used as an alternative, it is much harder to find substitutes for most typical uses of electricity.

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