Press Release
Revisions to Extra High-Voltage/High-Voltage Standard Options Agreements (for FY 2024)
~ Revisions to Current Options and New Rate Plans to Meet the Needs of Our Customers~

September 27, 2023

TEPCO Energy Partner, Inc.

From April, 2024, TEPCO Energy Partner, Inc. (hereinafter referred to as, “TEPCO EP”) will be offering three new electricity rate plans (basic plan, market price adjustment-free plan, market price-linked plan; hereinafter referred to as, “new rate plans”) as part of its extra high-voltage/high-voltage electricity rate options agreements that will reflect the fluctuation of wholesale power exchange spot market prices in different ways.

In conjunction with the offering of these new rate plans as standard options, we will stop accepting new applications for our current standard options^*1 agreements, with some exceptions^*2, after FY2024.
Customers that currently have standard options agreements with TEPCO EP until the end of March 2024 can decide to continue their current standard options agreement or switch over to a new rate plan.
Furthermore, since the latest power configurations are reflected in the rates, the fuel cost adjustment calculation figures and energy amount rate unit prices in our current standard options shall be revised.

We will begin accepting applications for the new rate plans at 10AM on Monday, October 23, 2023. TEPCO EP will stop accepting applications for new rate plans, with the exception of the market price-linked plan that is linked to market price, when the upper limit of power volume that TEPCO EP predicts it can supply has been reached. Thereafter, only applications for the market price-linked plan shall be accepted.

Details on the application process and required documents will be posted on TEPCO EP’s website (in Japanese only) on Tuesday, October 10, 2023. If any information is missing on the application, you may be asked to resubmit an application, or run the risk of experiencing a delay in the supply-demand commencement date that you apply for, so please read the details carefully and make sure all of your paperwork is in order.

TEPCO EP will continue to provide a stable source of power to our customers and strive to develop/provide appealing services that meet the needs of our customers and market conditions while streamlining the business operations.

1.New rate plans and revisions to standard options
Since April 2023, in addition to conventional fuel cost adjustments, we have added a mechanism to our current standard options by which spot market price fluctuations are adjusted by approximately 30%. Whereas our customers have understood these changes, we have also heard various opinions in regards to this matter. For example, due to the large monthly fluctuations in electricity rates, there are large discrepancies between budget plans and actual costs, and there are no rate plan choices for suppressing price fluctuations within the standard options. Therefore, we have created new rate plans and have revised our standard options.
(1)New rate plan summary and current standard options going forward
- A basic plan that includes fuel cost adjustments and market price adjustments, a market price adjustment-free plan that includes only fuel cost adjustments, and a market price-linked plan that includes only market price adjustments will be newly offered (to be added to the standard options in April 2024)
- With some exceptions^*2, new applications for current standard options will not be accepted after FY2024.
- Customers that currently have standard options agreements with TEPCO EP until the end of March 2024 can decide to continue their current standard options agreement or switch over to a new rate plan.

 

(2) New rate plan summary (*refer to Attachment 1, page 6 for details)

(3) New rate plan mechanisms
- The basic plan includes both fuel cost adjustments and market price adjustments.
- The market price adjustment-free plan includes only fuel cost adjustments.
- The market price-linked plan includes only market price adjustments.

2. Revisions to current electricity rate plans
In conjunction with the offering of new rate plans as part of the standard options, we will revise fuel cost, etc. adjustment calculation figures in light of power procurement conditions and spot market price fluctuations, and also energy amount rate unit prices so that there are no changes to the burden on customers.
(1) Applicable period: From April 1, 2024 onward
(2) Summary of revisions (*refer to Attachment 1, pages 14 ~18 for details)
a. Revisions to fuel cost, etc. adjustment calculation figures
- The most recent power configurations will be reflected in fuel cost adjustments
- The most recent market conditions will be reflected in market price adjustments
b. Energy amount rate unit price revisions
- Energy amount rate unit prices shall be revised in conjunction with the revisions noted in a. above.
c. Other revisions
- Elimination of restriction and suspension rate discounts
- Elimination of rate rules during periods of supply stop
- Revisions to rules on rounding numbers when calculating rates, etc.
(3) Period when the basic plan market adjustment percentage (basic market unit price^*3) will be determined
- In order to suitably reflect power procurement conditions and power sales volume trends in rates, basic market unit price^*3 shall be announced via TEPCO EP’s website (in Japanese only) by the end of December 2023 upon setting the current level as an upper limit.
(4) Future handling of the fuel cost, etc. adjustment system
- We shall regularly examine whether or not the fuel cost, etc. adjustment system needs to be revised in order to appropriately and promptly reflect in rates fluctuations in fuel prices and spot market prices, changes in the competitive environment, and customer contract conditions and needs resulting from the aforementioned fluctuations and changes.

3. Standard options agreement applications
Applications will be accepted as follows.

(1) Accepted applications
- Applications for new rate plans and some current standard options^*2
(2) Start of application period
- 10 AM, Monday, October 23, 2023
*Applications will no longer be accepted after the upper limit of power volume that TEPCO EP predicts it can supply has been reached
(3) Application method
• Applications should be submitted online (Japanese website only)
*Please refer to the Tuesday, October 10, 2023 announcement on TEPCO EP’s website (in Japanese only) for details on the application process.