Risk of Electricity Supply Constraints and Higher Electricity Tariffs
First written in FY2016. 6 of 15 entries say "Worsened", first in FY2025. Latest entry: 2026-07-30.
Osaka Steel moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2017: 3 of 9 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As the Group uses large amounts of electricity, there is a risk that electricity purchase prices could rise substantially because of fluctuations in resource prices, including crude oil and liquefied natural gas, caused by regional conflicts, the expansion of renewable energy, and changes in the electricity supply and demand environment associated with decarbonization.」
The company explicitly identifies regional conflicts, resource prices, the expansion of renewable energy, and changes in the electricity supply and demand environment associated with decarbonization as factors behind the risk of higher electricity prices. - 2026-05-12WorsenedFinancial Results Presentation
「Cost pressures also remained severe, with scrap prices, our main raw-material cost, rising in the second half of the fiscal year and electricity and logistics costs increasing.」
The increase in electricity costs is recorded as part of the fiscal-year results. - FY2026-H1WorsenedAnnual report
「Construction demand, our main end-market, has been slower than expected to recover from its weakness caused by surging material and equipment prices and labor shortages. The environment has remained challenging as electricity prices and logistics costs have risen further.」
Electricity prices have risen further from their previous elevated level, while higher logistics costs have also added to the pressure. The risk of higher electricity tariffs has worsened as an actual cost condition. - FY2025WorsenedAnnual report
「Our operating environment is becoming increasingly challenging, as no substantial recovery in construction demand is expected and further increases in electricity tariffs and other costs are anticipated.」
Higher electricity costs are described not only as an actual result but also as an expected further increase, indicating that electricity tariff risk has intensified. - FY2025-H1RestatedAnnual report
「From a cost perspective, although the price of iron scrap, the primary raw material, has fluctuated sharply with exchange rate movements, there has been no change in the structural conditions keeping it elevated. In addition, higher electricity and logistics costs resulted in the continuation of a challenging cost environment.」
The challenging cost environment, including higher electricity costs, has continued. No new change in the risks of electricity supply constraints or higher tariffs is indicated. - FY2024RestatedAnnual report
「Recently, resource prices have remained elevated because of the worsening situation in Eastern Europe and other factors, while electricity prices have risen substantially.」
Persistently high resource prices and rising electricity prices continue to be described as actual cost conditions, reaffirming that the risk of higher electricity tariffs has materialized. - FY2024-Q1RestatedAnnual report
「During the first quarter, the Japanese economy and the Indonesian economy, where we operate, both recovered modestly. However, the Group's operating environment remained challenging, as construction demand continued to be weak, as in the previous fiscal year, while iron scrap and electricity prices remained elevated.」
Persistently high electricity prices are described as an actual cost condition continuing from the previous fiscal year, indicating that the risk of higher electricity tariffs remains materialized. - FY2022MaterialisedAnnual report
「Recently, resource prices have surged because of the worsening situation in Eastern Europe and other factors, and electricity prices have risen substantially.」
The company states that the previously identified risks related to electricity supply and rising tariffs have materialized, with resource prices surging and electricity prices rising substantially. - FY2021ReframedAnnual report
「Electricity tariffs could affect performance depending on changes in the domestic electricity supply environment associated with the expansion of renewable energy and other factors.」
In addition to the previous risks of persistently high and rising electricity tariffs, the company views changes in the electricity supply structure associated with the expansion of renewable energy as a key risk factor. - FY2019RestatedAnnual report
「As the Group uses large amounts of electricity, it may face supply constraints if electricity supply and demand become tight because of the operating status of power plants, including nuclear power plants, weather conditions and other factors. Electricity tariffs are also currently elevated, and depending on future changes in the domestic electricity supply environment, there is a risk of further increases that could affect performance.」
The company continues to describe electricity supply constraints and the risk of further increases in elevated electricity tariffs. - FY2018RestatedAnnual report
「As the Group uses large amounts of electricity, it may face supply constraints if electricity supply and demand become tight because of the operating status of power plants, including nuclear power plants, weather conditions and other factors. Electricity tariffs are also currently elevated, and depending on future changes in the domestic electricity supply environment, there is a risk of further increases that could affect performance.」
The company continues to describe electricity supply constraints and the risk of further increases in already elevated electricity tariffs. - FY2018-Q1MaterialisedAnnual report
「In the ordinary steel electric arc furnace industry to which our Group belongs, domestic steel demand remained sluggish, while manufacturing costs increased because of higher energy unit prices and auxiliary material prices, resulting in continued challenging business conditions.」
The company states that higher energy unit prices increased manufacturing costs. Although electricity tariffs are not specifically mentioned, this can be linked to the materialization of energy cost inflation risk. - FY2016First statedAnnual report
「Depending on future changes in the domestic electricity supply environment, there is a risk of further increases in electricity tariffs, which could affect performance.」
The company identifies tight electricity supply and demand caused by nuclear power plant shutdowns, as well as future increases in electricity tariffs, as risks.