Intensifying Competition in the Energy Business and Customer Acquisition Risk
First written in FY2018. 7 of 18 entries say "Restated". Latest entry: 2026-10-14.
U-Next Holdings moved to the "Worse" side of this theme in 2022, 4 years after the typical company in this theme (2018).
The whole theme swung hardest in 2024: 8 of 21 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2025RestatedAnnual report
「In the energy sector, electricity prices remain unstable due to the continuation of international conflicts and other factors, affecting procurement prices for electricity in this business. If procurement prices rise in the future and this is passed on to customers’ electricity rates, our price advantage may decline, potentially affecting the group’s operating results through fewer new customer acquisitions, cancellations by existing customers and switching to other providers.」
The company is reconfirming the existing energy business risk that instability in electricity procurement prices may lead to a decline in price competitiveness, fewer new customer acquisitions and cancellations by existing customers. - FY2024RestatedAnnual report
「The foreign exchange market also shifted abruptly from a trend toward a weaker yen to a stronger yen, becoming highly volatile, and electricity procurement costs likewise became unstable.」
The company continues to identify the risk that electricity procurement costs in the energy business may become unstable due to foreign exchange rates and other factors, with renewable energy and one-stop services as responses. - FY2024-Q1MitigatedAnnual report
「While electricity procurement costs are trending lower, changes in the market have continued, including the revision of new rate plans (standard plans) by major electric utilities and the approval of increases in regulated rates.」
Electricity procurement costs are trending lower, partially easing the previous pressure for higher costs, while changes to rate plans and regulated rates continue. - FY2023-Q3RestatedAnnual report
「For U-POWER (high voltage), we are promoting subscriptions by proposing a plan that serves as an alternative for USENでんき (high voltage) customers, for whom cancellations due to soaring electricity rates have continued.」
While cancellations due to soaring electricity rates continue in high-voltage electricity, the company continues to promote subscriptions using U-POWER as an alternative. - FY2023-Q2RestatedAnnual report
「For USENでんき (high voltage), a certain number of cancellations have continued due to soaring electricity rates. U-POWER has promoted subscriptions by serving as an alternative for these customers and proposing plans from which companies unable to secure contracts with an electricity provider can choose, as many new electricity retailers have suspended new applications.」
While cancellations due to soaring electricity rates continue in high-voltage electricity, U-POWER is serving as an alternative for cancelled customers and promoting subscriptions among companies unable to secure a provider. - FY2023-Q1MaterialisedAnnual report
「For USENでんき (high voltage), cancellations among existing customers due to higher electricity selling prices resulting from increased electricity procurement costs have continued.」
Cancellations among high-voltage electricity customers due to higher electricity procurement costs and selling prices continued during the first quarter. - FY2022MaterialisedAnnual report
「For USENでんき (high voltage), some cancellations have occurred among existing subscribed facilities as a result of negotiations to raise electricity selling prices due to higher electricity procurement costs, and cancellations have continued since then.」
Higher electricity procurement costs and negotiations to raise selling prices have resulted in actual cancellations among existing high-voltage electricity customers, and cancellations have continued since then. - FY2022-Q3WorsenedAnnual report
「The outlook for steady business growth has become uncertain due to surging international fuel prices and tight electricity supply and demand amid the situation in Ukraine. For USENでんき (high voltage), the company recognizes the need to negotiate higher electricity selling prices for existing subscribed facilities due to increased electricity procurement costs. If this leads to an increase in cancellations, the number of subscriptions is expected to be affected.」
The company states that surging international fuel prices and tight electricity supply and demand have increased electricity procurement costs and necessitated negotiations to raise selling prices, potentially affecting customer expansion through higher cancellations. - FY2021RestatedAnnual report
「The business has also been affected by factors including the insufficient recovery in electricity consumption at customer stores and commercial facilities, while in the high-voltage segment, market competition has intensified and price competitiveness has declined relatively,」
The company continues to identify the delayed recovery in electricity demand, intensifying competition in the high-voltage segment and declining relative price competitiveness as risk factors. - FY2021-Q1RestatedAnnual report
「Although the total number of high- and low-voltage supply contracts is increasing on a net basis, competition in the high-voltage segment has intensified and price competitiveness has declined relatively, and we continued working to retain and acquire customers.」
While indicating a net increase in total contracts in the energy business, the company reiterates its recognition that competition in the high-voltage segment remains intense and relative price competitiveness continues to decline. - FY2020RestatedAnnual report
「Although the total number of high- and low-voltage supply contracts is increasing on a net basis, competition in the high-voltage segment has intensified and price competitiveness has declined relatively,」
The company states that total supply contracts in the energy business are increasing on a net basis, while competition in the high-voltage segment remains intense and relative price competitiveness continues to decline. - FY2020-Q3WorsenedAnnual report
「In the high-voltage segment, the number of supply contracts has turned slightly lower due to intensifying market competition and a relative decline in price competitiveness,」
The company states that in the energy business, the number of high-voltage supply contracts has turned slightly lower due to intensifying competition and a relative decline in price competitiveness. - FY2020-Q2WorsenedAnnual report
「Competition with competing services has intensified in this business, but by providing a range of services to commercial establishments through a one-stop offering, we are enhancing the value of the services provided by our group.」
For the energy business, the company describes the intensifying competition with competing services, while also indicating its response of providing a one-stop offering together with other services. - FY2018First statedAnnual report
「In this business, our group primarily operates in the commercial establishment segment, focusing on large-volume high-voltage customers, but competition to acquire customers is expected to intensify further with other electricity retailers.」
For the energy business, the company has for the first time identified as a separate risk the intensifying competition to acquire customers from electricity retailers, as well as the possibility of lower sales and higher sales promotion expenses due to price competition.