Regulatory risks related to financial services, commodity trading and the electricity business
First written in FY2016. 6 of 15 entries say "Worsened", first in FY2017-Q1. Latest entry: FY2024.
Astmax moved to the "Worse" side of this theme in 2019, 1 year before the typical company in this theme (2020).
2 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「Measures were outlined including an expiry system requiring projects that have not commenced operations to set a deadline for the start of operations, the market-linked FIP (Feed-in Premium) system, a decommissioning cost reserve system based on external reserves collected in a withholding-like manner, and grid reinforcement to harness renewable energy potential.」
The Group continues to recognize institutional factors related to the renewable energy business, including the expiry system, FIP, decommissioning cost reserves and grid reinforcement. - FY2023-Q2MaterialisedAnnual report
「In the renewable energy-related business, in addition to bearing costs associated with the development of power plants, including geothermal projects, such as various fees and interest expenses on bank borrowings to fund construction costs, the Group's burden increased following the launch this fiscal year of a decommissioning cost reserve system based on external reserves collected in a withholding-like manner.」
The decommissioning cost reserve system was launched, and the associated burden actually increased in the renewable energy-related business. - FY2022WorsenedAnnual report
「In addition, effective April 2022, the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Operators of Electric Utilities was amended, and measures were outlined including an expiry system requiring projects that have not commenced operations to set a deadline for the start of operations, the market-linked FIP (Feed-in Premium) system, a decommissioning cost reserve system based on external reserves collected in a withholding-like manner, and grid reinforcement to harness renewable energy potential.」
Institutional changes related to the renewable energy business, including the expiry of projects that have not commenced operations, FIP, decommissioning cost reserves and grid reinforcement, moved into the implementation phase. - FY2022-Q3WorsenedAnnual report
「Measures were outlined including an expiry system requiring projects that have not commenced operations to set a deadline for the start of operations, the market-linked FIP (Feed-in Premium) system to be introduced in fiscal 2022, and a decommissioning cost reserve system based on external reserves collected in a withholding-like manner.」
In addition to the expiry system for projects that have not commenced operations, the FIP system and the decommissioning cost reserve system were outlined, marking further changes in the regulatory and institutional environment surrounding the renewable energy business. - FY2022-Q2RestatedAnnual report
「In addition to the system requiring operating start deadlines for projects not yet in operation, proposals were presented for the direction of the system from fiscal 2021 onward based on the market-linked FIP system scheduled to be introduced in fiscal 2022, as well as proposals concerning procurement prices and other matters based on that direction.」
The company continues to identify the obligation to set operating start deadlines for projects not yet in operation and proposals concerning the FIP system scheduled to be introduced in fiscal 2022 as regulatory factors affecting the renewable energy business. - FY2022-Q1WorsenedAnnual report
「In addition to the system requiring operating start deadlines for projects not yet in operation, proposals were presented for the direction of the system from fiscal 2021 onward based on the market-linked FIP system scheduled to be introduced in fiscal 2022, as well as proposals concerning procurement prices and other matters based on that direction.」
In addition to the obligation to set operating start deadlines for projects not yet in operation, proposals for the market-linked FIP system scheduled to be introduced in fiscal 2022 were presented, indicating changes in the regulatory environment for renewable energy businesses. - FY2021-Q1WorsenedAnnual report
「A new system was also established requiring operating start deadlines to be set for projects not yet in operation.」
The obligation to set operating start deadlines for projects not yet in operation continues to be cited as a regulatory constraint. Including lower FIT rates and expanded bidding eligibility, the regulatory environment for securing and developing projects has become more demanding. - FY2019RestatedAnnual report
「As part of measures to contain the burden on the public, a new system was established requiring operating start deadlines to be set for commercial solar power projects that obtained IDs during fiscal 2012 to fiscal 2014 but had not yet started operations and had no operating start deadline set.」
The company continues to identify the obligation under the amended FIT Act and other regulations to set operating start deadlines for projects not yet in operation as a regulatory risk related to project development and acquisition. - FY2019-Q3WorsenedAnnual report
「As part of measures to contain the burden on the public, a new system was established requiring operating start deadlines to be set for commercial solar power projects that obtained IDs during fiscal 2012 to fiscal 2014 but had not yet started operations and had no operating start deadline set.」
New regulatory requirements were established requiring operating start deadlines to be set for projects not yet in operation, adding regulatory constraints on the development and maintenance of solar projects. - FY2019-Q2RestatedAnnual report
「Although the enforcement of the amended FIT Act, the entry of competitors and a decline in high-quality projects have made it difficult to secure projects, we will continue working to secure IDs for solar power facilities that have not yet started operations and projects in the secondary market, including through transfers, with the aim of generating profit for the period.」
The company continues to describe the difficulty of securing projects due to competitor entry and a decline in high-quality projects, even after the amended FIT Act took effect. - FY2018-Q2Full-scale implementation of the amended FIT Act and its implementing regulationsAnnual report
「The FIT scheme was reviewed to achieve both the maximum introduction of renewable energy and the containment of the burden on the public, by promoting a balanced introduction of different power sources based on the energy mix, promoting cost-efficient introduction to contain the public burden, and achieving efficient electricity trading and distribution by capitalizing on the results of electricity system reforms. The amended FIT Act took effect in April 2017. At the end of August 2017, an amended ministerial ordinance revising part of the implementing regulations for the amended FIT Act was promulgated and took effect on the same day, with the aim of restricting the subsequent addition of solar panels to operating solar power plants without changing the output of their power conditioners, known as overloading.」
The amended FIT Act took effect in April 2017, and at the end of August, an amendment to the implementing regulations restricting overloading was also promulgated and took effect. The regulatory changes progressed from the discussion and planning stage to actual implementation. - FY2017Transition to the implementation phase of the amended FIT ActAnnual report
「Regarding the environment surrounding renewable energy, discussions were held on government-led regulatory reforms to promote its introduction. The existing feed-in tariff scheme (FIT) was reviewed, and the amended FIT Act was to take effect from April 2017.」
The review of the FIT scheme progressed from the discussion stage to the stage of implementing the amended law in April 2017, and the regulatory environment concerning projects not yet in operation and cost efficiency became more concrete. - FY2017-Q3RestatedAnnual report
「Regarding the environment surrounding renewable energy, discussions were held on government-led regulatory reforms to promote its introduction. The existing feed-in tariff scheme (FIT) was reviewed, and the amended FIT Act was scheduled to take effect in April 2017.」
The company continues to identify the review of the FIT scheme and the amended FIT Act scheduled to take effect in April 2017 as regulatory factors. - FY2017-Q1WorsenedAnnual report
「This is intended to achieve both the maximum introduction of renewable energy and the containment of the burden on the public by promoting a balanced introduction of different power sources based on the energy mix, promoting cost-efficient introduction to contain the public burden, and achieving efficient electricity trading and distribution by capitalizing on the results of electricity system reforms.」
The review of the FIT scheme and the amended FIT Act scheduled to take effect in April 2017 have made regulatory requirements, including cost efficiency and deadline management for projects not yet in operation, more concrete. - FY2016First statedAnnual report
「As a group, we are working to establish and maintain compliance and internal control systems at the appropriate level and will continue our efforts to strengthen them further. However, if we were to receive administrative guidance or sanctions from a supervisory authority or other body, our ordinary business activities could be restricted depending on the circumstances, potentially hindering the development of our customer business.」
The company also refers to the strengthening of conduct regulations for special businesses for qualified institutional investors and others under the 2015 amendments to the Financial Instruments and Exchange Act.