Press Release
Revision of the Extra High- and High-Voltage Rate Plans (Standard Rate Plans)

September 20, 2022

Tokyo Electric Power Company Holdings, Inc.
TEPCO Energy Partner, Inc.

The TEPCO Group^※1is streamlining management according to the Comprehensive Special Business Plan to provide a stable supply of electricity to our customers.
However, with the recent global soaring of resource prices, the earnings structure of TEPCO Energy Partner (hereinafter TEPCO EP) has been worsening year by year, as expenses exceed revenue due to the sharp rise in fuel and wholesale electricity market prices that our streamlining efforts cannot keep up with.
In light of these situation, we had been considering to review the rates for the Extra High-voltage and High voltage rate plans (standard rate plans^※2) that are especially affected by fluctuations in wholesale electricity market prices to be able to adapt appropriately to market risks (as announced on August 2, 2022). Today, we are announcing the details of the new rates that will go into effect after April 2023.

We take seriously that the revision will be a burden to our Extra High-voltage and High-voltage customers, and will be accelerating energy conservation and saving electricity initiatives with our customers to reduce that burden. TEPCO EP will do its utmost to ensure that the energy conservation and saving electricity initiatives take root and customers can feel the benefits of the new standard plans. Thank you for your understanding.

<Background and overview of the electricity rate plan revision>
Global rise in resource prices, changes in the power procurement structure, fluctuations in demand due to increased competition in the Tokyo area among other factors have dramatically changed the electricity industry landscape from 2012 when the Extra High-voltage and High-voltage Rate Plans were last revised. The Extra High-voltage and High-voltage Standard Plans (for the Tokyo Area) will be revised as below to reflect this change.

(1) Introducing a new mechanism to adjust for market price fluctuations to the existing fuel cost adjustment system
Under the current fuel cost adjustment system^※3, the monthly electricity bill is adjusted to reflect fluctuations in the price of crude oil, LNG and coal. The revision will introduce a revised fuel cost adjustment system that will have a market price adjustment surcharge^※4 to swiftly reflect fluctuations in the spot prices in the JPEX in addition to the existing fuel cost adjustment surcharge that reflects changes in the price of fuel. The values upon which the fuel price adjustment surcharge is calculated will be also revised.

(2) Revision of the unit price of the standard rate plan
The revised energy amount rate unit price will be sum of the September 2022 fuel cost adjustment unit price and the current energy amount rate unit price.

(3) Reflecting changes in wheeling charges that comes with the introduction with the new wheeling revenue cap system
Additionally, further review^※5 is planned to reflect the change of the Wheeling Service Provisions of TEPCO Power Grid, Incorporated (hereinafter TEPCO PG) onto our unit prices^*5. Details will be announced separately once changes to the Wheeling Service Provisions are finalized.

(4) How to inform customers
(For Current TEPCO EP customers)
Details of the electricity price revisions will be informed in letter form by mail or in person.
A dedicated phone line for inquires will be set up (details to follow) and a dedicated website will be launched on the TEPCO EP website at 10 am September 21.

(For Customers seeking to switch to TEPCO EP)
For customers currently contracted under other retail operators or TEPCO PG who wish to switch to TEPCO EP after April 2023, we will restart discussions based on the revised rate plans after today.
Please note if you are considering switching to TEPCO EP during FY2022, contracts will be based on the market-linked rate plan until the end of FY2022. We will be announcing application methods and necessary documents on our website in mid-October.

<Our efforts to reduce the burden on our customers>
(1) Efforts to support energy conservation and saving electricity
Thank you for participating in demand response (DR)^※6 during the tight power supply- demand this summer and in the 2022 TEPCO Energy Conservation Program. This upcoming winter, we will provide energy conservation plans and support cleaning and updating of air conditioning units to reduce the burden on our household and corporate customers.
We will continue to expand our initiatives that support energy conservation and reduce the burden on our customers.

(2) Incorporating nuclear power
The early restart of nuclear power plants, as a source of low-cost and stable electricity, continues to be important for energy security and to ensure stable supply of electricity. However, TEPCO is not yet been able to provide a specific date for the restart.
Meanwhile, we cannot shift all of the increase fuel prices and electricity market prices solely onto our customers without considering the option of nuclear power generation. As such, 75% of the operation of Kashiwazaki-Kariwa Nuclear Power Station’s Unit 7 is incorporated in the calculation of the rate plan for FY2023.

The TEPCO Group will continue to provide valuable information to our customers so that they can conserve energy and save electricity within reasonable limits and expand the scope of energy conservation and saving electricity initiatives implemented together with our customers. We will contribute to the realization of a carbon neutral society by 2050 and to the realization of comfortable and secure lifestyles for our customers.

*1  The TEPCO Group is comprised of five companies: Tokyo Electric Power Company Holdings, Incorporated, TEPCO Fuel & Power, Incorporated, TEPCO Power Grid, Incorporated, TEPCO Energy Partner, Incorporated and TEPCO Renewable Power, Incorporated

*2  The types of contracts in the Electricity General Supply Provisions for Extra High-voltage and High-voltage Plans

*3  The system that automatically adjusts the monthly electricity bill to swiftly reflect fluctuations in the thermal fuel prices (crude oil, LNG, and coal)

*4  Calculated by multiplying the difference between the average market price and standard market price (baseline price) every month with the standard market unit price

*5   Price revisions that went into effect on October 1, 2021 according to the Wheeling Supply Provisions implemented October 1, 2020 (prices were raised by ¥0.03 per kWh of power used in response to the notice from the METI Minister pursuant to Article 45-21-2 and 45-21-5 of the Enforcement Regulations for the Electricity Business Act, and the end of reserves according to the Article 3-3 of the supplementary provisions for the Spent Nuclear Fuel Reprocessing Fund Act）and the revision of the Wheeling Supply Provisions that will go into effect on April 2023 (to reflect the introduction of the revenue cap system, which is the new wheeling charge system to be introduced in FY2023)

*5  The owner of the demand-side energy resource or a third party controls the energy resource to influence the electricity demand curve. The shape of the demand curve can be classified into “lowering DR” where demand is reduced (suppressed) and “raising DR” where demand is increased (created).

Attachment 1:

• Details of the Revision of the Extra High- and High-Voltage Rate Plans (Standard Rate Plans)(0.99MB)

Attachment 2:

• Overview of the Electricity Rate Plan Revision and the Revised Rate Plans(503KB)