Surge in Electricity Trading Prices in the Retail Electricity Business
First written in FY2021. 5 of 7 entries say "Mitigated", first in FY2023. Latest entry: FY2024.
The whole theme swung hardest in 2021: 4 of 15 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「The stabilization of fuel procurement prices and other factors ultimately caused electricity procurement costs to fall unexpectedly. Although cost reductions and the lower extent of price pass-through caused electricity revenue to fall substantially below forecasts, electricity gross profit was in line with the company's internal plan.」
The stabilization of fuel procurement prices reduced electricity procurement costs and compressed costs. Although electricity revenue fell below forecasts, electricity gross profit was in line with the internal plan. - FY2024-Q3MitigatedAnnual report
「In retail electricity, from the first quarter we had expected electricity procurement costs to increase due to higher fuel-cost adjustments accompanying increased electricity demand in summer and winter, as well as electricity revenue to increase through price pass-through. However, the stabilization of fuel procurement prices and other factors ultimately caused electricity procurement costs to fall unexpectedly, contributing to cost reductions and reducing the extent of price pass-through, with electricity revenue consequently falling substantially below forecasts.」
The stabilization of fuel procurement prices caused electricity procurement costs to fall unexpectedly, easing the risk to gross profit from surging prices. On the other hand, electricity revenue fell substantially below forecasts due to the lower extent of price pass-through. - FY2024-Q2MitigatedAnnual report
「As noted above, electricity gross profit increased more than expected because the decline in electricity procurement costs substantially reduced costs.」
The stabilization of fuel procurement prices reduced electricity procurement costs. Although electricity revenue fell below forecasts, electricity gross profit increased more than expected as a result of cost reductions. - FY2024-Q1MitigatedAnnual report
「As fuel prices, including liquefied natural gas (LNG), stabilized for power generators and others, lower electricity procurement costs reduced the extent of price pass-through, causing electricity revenue to fall below forecasts, although gross profit increased.」
The stabilization of fuel prices reduced electricity procurement costs, easing the impact of surging electricity procurement prices on gross profit. Electricity revenue fell below forecasts due to the lower extent of price pass-through, but gross profit increased. - FY2023MitigatedAnnual report
「To prepare for procurement prices rising more than expected, our Group is reducing the risk associated with fluctuations in market procurement prices by introducing fixed-price procurement through bilateral transactions with power generators and others, as well as a mechanism for reflecting actual market prices in electricity rates.」
To address the risk of fluctuations in procurement prices in the new electricity business, the company introduced fixed-price procurement and a mechanism for reflecting market prices in electricity rates, aiming to reduce the risk. - FY2022-Q3RestatedAnnual report
「In the retail electricity service, business phone sales declined due to the impact of surging electricity trading prices on the Japan Electric Power Market (JEPX), as well as inventory shortages at business phone manufacturers and other companies caused by the semiconductor shortage, although」
The surge in electricity trading prices on JEPX continues to be cited as a business-environment factor affecting the retail electricity service. - FY2021First statedAnnual report
「However, electricity trading prices surged on the Japan Electric Power Exchange from late December 2020 through January 2021, increasing electricity procurement costs and reducing gross profit.」
In the new electricity business, electricity procurement costs increased and gross profit declined as a result of surging electricity trading prices on JEPX.