Tokyo Electric Power Company (TEPCO) will lower the wheeling charges for use
of its network by power producers and suppliers (PPSs), effective April 1,
2006, and on February 14, 2006 notified the Minister of Economy, Trade and
Industry of this change to the Wheeling Service Agreement, which is
summarized below.
. Summary of Charge Revisions
Since liberalization of electricity retail sales began in 2000, TEPCO has
revised the wheeling charges for the use of its network by PPSs three times
in tandem with electricity rate reductions. Even after these reductions,
TEPCO has been taking measures to increase management efficiency throughout
its operations, such as further reducing capital expenditures for
transmission, distribution and transformation. In view of the results of
such measures, TEPCO has decided to further reduce charges by fully
incorporating future efficiency improvement efforts, based on the concept
of forward-looking costs.
Using the fiscal year 2006, ending March 31, 2007 as the cost calculation
period, connection transmission service fees will be ¥2.55/kWh for
electricity supply at extra-high voltage, a reduction of ¥0.02/kWh or 0.78%
on average, and ¥4.70/kWh for supply at high voltage, a reduction of
¥0.19/kWh or 3.89% on average.
Please note that in this notification, among the costs required for
reprocessing of irradiated fuel at nuclear power plants (back-end costs),
the portion of costs for fuel previously used for power generation is
reflected* in wheeling charges (¥0.13/kWh at extra-high voltage, ¥0.14/kWh
at high voltage). Excluding this portion for previously used fuel, the fees
would be ¥2.42/kWh, a 5.84% reduction, for supply at extra-high voltage, and
¥4.56/kWh, a 6.75% reduction, for supply at high voltage.
*Due to the October 2005 enactment of the Law on the Creation and
Management of Reserve Fund for the Reprocessing of Spent Fuel at Nuclear
Power Stations, the scope of back-end costs passed on to customers
through fees was changed to include reprocessing facility shutdown costs
etc.
Among these costs, the portion corresponding to past power generation is
charged to all customers, including not only customers of electric power
companies but also customers who purchase electricity from power
producers and suppliers.
For reference: Average Unit Costs
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(1) Connection transmission service fees
Supply at extra-high voltage:
Supply at high voltage:
(2) Load fluctuation electric power service fees
With regard to load fluctuation electric power service fees in the event
that electricity is supplied to compensate for power shortages when TEPCO's
network is used by PPSs, besides the fee for electricity supplied within
the standard fluctuation range for shortages within 3% of the standard
load, there is a fee for electricity supplied for shortages greater than 3%
within a pre-selected fluctuation range up to 10%, according to the wishes
of the PPSs, and a fee for electricity supplied exceeding the fluctuation
range for shortages that exceed these levels.
Appendix
Main Electricity Rates