BUSINESS / Companies

Japanese utilities reel — some more than others — as sky-high fuel prices hit earnings

All of Japan's power suppliers have revised down their consolidated earnings estimates, as they cannot reflect higher fuel costs in electricity rates until the next fiscal year from April. | REUTERS

By Yuka Obayashi
Reuters

Feb 2, 2022

All of the nation's 10 regional utilities have slashed their earnings estimates for this business year on soaring fossil fuel prices, but Kyushu Electric Power Co. and Kansai Electric Power Co. are weathering the pain better, having managed to restart nuclear plants.

Highly dependent on fossil fuels since the 2011 Fukushima disaster, four utilities reported losses for the nine months to the end of December, while six now predict losses for the full year.

Chubu Electric Power Co. is the hardest hit, forecasting a ¥45 billion annual net loss compared with its earlier expectation of a ¥25 billion profit.

Japanese utilities reel — some more than others — as sky-high fuel prices hit earnings

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