The Tokyo Electric Power Company, Inc. (TEPCO) decided to take a special measure
aimed at mitigating the impact of the fuel cost adjustments to January-March 2009
electricity rates on customers. Pursuant to the provisory clause of Article 21,
Paragraph 1 of the Electricity Utilities Industry Law, TEPCO today applied to the
Minister of Economy, Trade and Industry for approval of the special measure directed
at residential and other low-voltage (100 or 200 V) customers.
1. Background of the special measure
In the recent harsh economic climate, the Ministry of Economy, Trade and Industry
(METI) requested power companies to take proactive measures to avoid sharp changes
in electricity charges, which are expected as a result of fuel cost adjustments in
the January-March 2009 period. METI suggested that such a measure should be taken
from the consumers' point of view, as far as power companies can ensure the stable
supply of electricity and sound business management.
In response to this request, TEPCO decided to implement a special measure aimed at
mitigating the impact of fuel cost adjustments to electricity rates on customers by
leveling them across the period from January 2009 to March 2010. The decision was made
in consideration of many factors in the current harsh economic climate, such as the
company's challenging financial conditions and the potential effect of the increase
in electricity rates (which are public utility rates) on customers.
2. Outline of the special measure
As for electricity rates applicable to residential and other low-voltage customers
of January-March 2009, TEPCO will reduce the unit price for the fuel cost adjustments
calculated under the current system by about 50%. A quarter of the reduced amount will
be added to the fuel cost adjustment unit prices for the subsequent four periods each:
April-June, July-September, and October-December 2009, and January-March 2010.
Appendix: Fuel cost adjustment for metered supply (PDF 21.8KB)
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