Press Conference by Minister Nishimura (Excerpt)

*Note: This is a provisional translation for reference purposes only.

9:12-9:20 a.m.
Friday, February 3, 2023
Press Conference Room, METI Main Building

Question-and-Answer Session

Power Companies' Financial Results

Q: Regarding the financial results of major power companies for the fiscal period from April to December, several companies reported large deficits, including Tokyo Electric Power Company, which posted a final deficit of over 650 billion yen. I think that having sound management in power companies is essential to ensuring a stable power supply. Please tell us your thoughts on the financial results.
 
A: This question is about power companies' financial results.
I understand that major power companies are generally under difficult conditions against the backdrop of rising costs of procuring fuel as a result of Russia's aggression against Ukraine, the global surge in energy prices, and the impact of exchange rates, as you are aware.
As you pointed out, stable procurement of fuels, capital investment, and the securing of personnel are necessary for a stable power supply. It is important to secure funds for that purpose. Major power companies have made efforts to streamline management and review free rates in order to improve profitability. In addition, seven companies have already applied for an increase in regulatory tariffs.
I am aware that major power companies are taking steps including these measures to improve their business conditions, and we will closely follow up on such developments. We will also strictly examine the application for approval of an increase in regulated tariffs from the perspective of stable supply, while also considering whether the procurement costs of fuels are appropriately reflected, and whether efforts are being made to improve management efficiency.