Press Releases 2015

TEPCO decided to discontinue branches, thermal power offices and other units within its organization by July of this year in order to realize business management which is even more closely connected to our customers and society (decision announced on March 31, 2014). In concert with this, TEPCO will execute the following reorganization on July 1 of this year to put in place a structure in preparation for full market liberalization and the holding company system, which will be introduced in April 2016.

1. Fuel & Power Company (Post-spinoff Fuel & Thermal Power Generation Operations Company)
To prevail over the competition after full market liberalization, the Fuel & Power Company will pursue an overhaul of the business structure encompassing the entire supply chain from upstream investments in fuel to power generation to remake itself into an energy company that is able to contend dynamically around the globe.
To achieve this, the Thermal Power Offices will be abolished and a two-tiered structure of the Head Office and the Thermal Power Station will be adopted, which will allow the arrangement of a system suited to flexible business operation, as well as the centralization and sophistication of maintenance, design, personnel development and some other functions.
The organization will be flexibly retooled in conjunction with future progress made in comprehensive alliances.

2. Power Grid Company (Post-spinoff General Power Transmission and Distribution Operations Company)
Taking into account full market liberalization and ensuring the reliability of electric power supplies, the Power Grid Company will realize the top wheeling cost in Japan, enhance transmission and distribution convenience, maximize operational efficiency, and promote collaboration with other power companies, while improving business management neutrality and fairness.
To accomplish this, cost reductions and business structure will be revamped and functions enhanced to expand business across an even broader area. The company will put in place a system for introducing and operating smart meters as well as a centralized implementation structure for wheeling-related operations, including low-voltage sectors.
Along with the dissolution of branches, the general service centers, which will be located principally in prefectural capitals within TEPCO's business area, will serve as agents for the Power Grid Company and operate in a solid nexus with the region.

3. Customer Service Company (Post-spinoff Retail Electricity Operations Company)
Taking the customer's point of view, the Customer Service Company will offer and provide products and services with a focus on efficient energy consumption, and, through alliances with other companies, it will offer one-stop service to customers nationwide.
To accomplish this, the Customer Service Company will undergo a fundamental revision to put in place an organization that is quick to respond to the competitive environment. This organization will include establishment of the Electric Power & Gas Division and Smart Life & Business Service Division to integrate sales of electricity and gas as well as an expansion of alliances in a diverse manner, and the maintenance of dynamic retail sales hubs tailored to the market.

4. Corporate (Post-spinoff Holding Company)
Corporate, which will assume management assistance functions, will establish four units: Management Planning, Public Relations, Technical and Environmental Strategy, and Nuclear Reform. The Management Planning Unit will play a central role in maximizing corporate value throughout the entire group by drafting management strategy which takes into account the business environment after full liberalization, optimally distributing management resources, and developing a structure to flexibly and quickly address alliance and business structure transformations.
After the transition, the holding company will be comprised of Corporate (management assistance) as well as four internal companies (Fukushima Daiichi D&D Engineering Company, Renewable Power Company, TEPCO Research Institute, and Business Solution Company), Fukushima Revitalization Headquarters (Fukushima Division), Niigata Headquarters (Niigata Division), and Nuclear Power & Plant Siting Division.

TEPCO will continue to make every possible effort to establish a management structure that combines "responsibility and competitiveness" to expand our business.

<Appendix>
Organization Chart for Transition to Holding Company Structure (July 2015- )(PDF 161KB)

<Reference>
System of company hubs(PDF 547KB)
*The document is available only in Japanese. We apologize for the inconvenience this may cause.