Errors in Calculating Electricity Tariff Costs in the Regulated Sector
The Kansai Electric Power Company,Incorporated
Electricity charges in the regulated sector, specified retail supply terms, certain power plants, and generation-side charges
The discount rate applicable to generation-side charges was incorrectly determined in part because a receiving voltage of 154kV was classified as exceeding the standard voltage of 140kV, although the 154kV in question was a nominal voltage, not a standard voltage.
The change in regulated tariff cost was an overstatement of approximately ¥14 million over 3 years, or approximately ¥5 million for a single year. The impact on customer charges is expected to be no more than ¥1 per contract type per month. The income statement line item is Not disclosed.
Related procedures
Minister of Economy, Trade and Industry (identified as the recipient of the notification of changes to the specified retail supply terms)
Company response
We will work to prevent recurrence.
We will consider how to make refunds to customers and work to prevent recurrence.
| Item | Details |
|---|---|
| Event name | Errors in Calculating Electricity Tariff Costs in the Regulated Sector |
| Date of occurrence | 1 April 2024 (the date on which the specified retail supply terms took effect; the calculation error occurred when calculating the cost for April 2024) |
| Subject Entity | The Kansai Electric Power Company,Incorporated |
| Target Locations / Products | Electricity charges in the regulated sector, specified retail supply terms, certain power plants, and generation-side charges |
| Cause | The discount rate applicable to generation-side charges was incorrectly determined in part because a receiving voltage of 154kV was classified as exceeding the standard voltage of 140kV, although the 154kV in question was a nominal voltage, not a standard voltage. |
| Amount of Impact on Business Performance | The change in regulated tariff cost was an overstatement of approximately ¥14 million over 3 years, or approximately ¥5 million for a single year. The impact on customer charges is expected to be no more than ¥1 per contract type per month. The income statement line item is Not disclosed. |
| Court or authority | Minister of Economy, Trade and Industry (identified as the recipient of the notification of changes to the specified retail supply terms) |
| Measures to prevent recurrence | We will work to prevent recurrence. |
| Outlook | We will consider how to make refunds to customers and work to prevent recurrence. |
Items this document does not state (16)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The discount rate for generation-side charges was incorrectly determined because a receiving voltage of 154kV was classified as exceeding the standard voltage of 140kV. In fact, the stated 154kV was a nominal voltage, not a standard voltage.