Increase in Fuel Costs Due to Fuel Price and Exchange-Rate Fluctuations

「If high fuel prices continue, the average fuel price under the Fuel Cost Adjustment System may exceed the cap, making it impossible to reflect some of the increase in fuel prices in electricity tariffs.」

「The consolidated earnings forecast for the fiscal year ending March 2027 is as follows, reflecting the impact of a lower nuclear capacity factor and higher fuel-market prices in the Energy Business, increased expenses and repair costs due to inflation, lower regional demand in the Transmission and Distribution Business, and increased expenses due to inflation and higher construction volumes.」

「On the expenditure side, operating expenses decreased by ¥107,704 million, or 5.9%, year on year to ¥1,731,566 million, due in part to lower thermal power fuel costs.」

「On the expenditure side, operating expenses decreased by ¥673,498 million, or 16.8%, from the previous consolidated fiscal year to ¥3,330,442 million, due in part to lower thermal power fuel costs and electricity purchased from other companies as a result of a higher nuclear capacity factor and lower fuel prices.」

「On the expenditure side, operating expenses decreased by ¥607,089 million, or 20.3%, year on year to ¥2,385,372 million, due in part to lower thermal power fuel costs resulting from lower fuel prices and a higher nuclear capacity factor.」

「On the expenditure side, operating expenses decreased by ¥351,304 million, or 18.1%, year on year to ¥1,584,820 million, due in part to lower thermal power fuel costs resulting from lower fuel prices and a higher nuclear capacity factor.」

「On the expense side, operating expenses were ¥1,936,124 million, up ¥788,360 million, or 68.7%, year on year. Although the company worked to achieve thorough management efficiency improvements, thermal fuel costs increased owing to the impact of foreign exchange and fuel prices and lower nuclear utilization, while purchased power costs from other companies increased owing to higher procurement costs from the wholesale electricity market.」

「On the expense side, operating expenses were ¥810,769 million, up ¥263,569 million, or 48.2%, year on year. Although the company worked to achieve thorough management efficiency improvements, thermal fuel costs increased owing to the impact of foreign exchange and fuel prices and lower nuclear utilization, while purchased power costs from other companies increased owing to higher procurement costs from the wholesale electricity market.」

「On the revenue side, in the energy business, sales revenue (operating revenue) decreased by ¥234,468 million, or 10.7%, year on year to ¥1,949,771 million. This was due in part to a decline in revenue from electricity charges for lighting and power as retail electricity sales volume declined, despite an increase in electricity sales revenue to other companies, as well as changes in the accounting treatment of renewable energy-related items following the application of accounting standards concerning revenue recognition.」

「On the expense side, operating expenses were ¥1,147,763 million, down ¥205,513 million, or 15.2%, year on year. Although costs increased owing to foreign exchange and fuel price fluctuations, operating expenses declined due to thorough management efficiency improvements, lower costs resulting from higher nuclear utilization and changes to the accounting treatment for renewable energy associated with the adoption of accounting standards concerning revenue recognition.」

「On the revenue side, in the energy business, sales revenue (operating revenue) decreased by ¥234,468 million, or 10.7%, year on year to ¥1,949,771 million. This was due in part to a decline in revenue from electricity charges for lighting and power as retail electricity sales volume declined, despite an increase in electricity sales revenue to other companies, as well as changes in the accounting treatment of renewable energy-related items following the application of accounting standards concerning revenue recognition.」

「On the expense side, operating expenses were ¥2,041,242 million, down ¥151,266 million, or 6.9%, year on year. This reflected lower thermal fuel costs in the power generation and sales business owing to lower retail electricity sales volume and foreign exchange and fuel price fluctuations, as well as lower depreciation expense in the telecommunications business, in addition to efforts to achieve thorough management efficiency improvements.」

「On the revenue side, in the energy business, sales revenue (operating revenue) decreased by ¥132,604 million, or 18.9%, year on year to ¥568,844 million. This was due in part to a decline in retail electricity sales volume amid intensifying competition and other factors, as well as changes in the accounting treatment of renewable energy-related items following the application of accounting standards concerning revenue recognition.」

「On the revenue side, in the energy business, sales revenue (operating revenue) decreased by ¥132,604 million, or 18.9%, year on year to ¥568,844 million. This was due in part to a decline in retail electricity sales volume amid intensifying competition and other factors, as well as changes in the accounting treatment of renewable energy-related items following the application of accounting standards concerning revenue recognition.」

「On the expense side, operating expenses were ¥2,255,801 million, up ¥190,359 million, or 9.2%, year on year. This reflected higher costs resulting from rising fuel prices and increased electricity sales volume and inter-area and sales to other companies, which outweighed the cost reductions resulting from the resumption of operations at nuclear plants and efforts to thoroughly improve management efficiency.」

「On the expense side, operating expenses were ¥1,501,955 million, up ¥114,712 million, or 8.3%, year on year. This reflected higher costs resulting from rising fuel prices and increased electricity sales volume and inter-area and sales to other companies, which outweighed the cost reductions resulting from the resumption of operations at nuclear plants and efforts to thoroughly improve management efficiency.」

「On the expenditure side, operating expenses were ¥696,986 million, an increase of ¥20,792 million, or 3.1%, from the same period of the previous year. This was despite thorough efforts to improve management efficiency and a reduction in costs resulting from the resumption of operations at nuclear plants, as costs increased due to higher fuel prices and higher inter-area and third-party electricity sales volumes.」

「The principal thermal power fuels used in the electric power business are LNG, crude oil and coal. Fuel costs therefore fluctuate depending on trends in crude oil prices, foreign-exchange rates and price negotiations, among other factors, and the Group's performance may be affected as a result.」

「On the expense side, operating expenses were ¥2,065,441 million, up ¥67,387 million, or 3.4%, year on year. This reflected higher thermal fuel costs and raw material costs for the gas and other energy businesses resulting from rising fuel prices, which outweighed the cost reductions from the resumption of operations at Units 3 and 4 of the Takahama Nuclear Power Station and efforts to thoroughly improve management efficiency.」

「On the expense side, operating expenses were ¥1,387,242 million, up ¥40,277 million, or 3.0%, year on year. This reflected higher fuel costs and raw material costs for the gas and other energy businesses resulting from rising fuel prices, which outweighed the cost reductions from the resumption of operations at Units 3 and 4 of the Takahama Nuclear Power Station and efforts to thoroughly improve management efficiency.」

「Due in part to higher fuel prices, which increased thermal power fuel costs and other expenses, operating expenses increased by ¥23,545 million, or 3.6%, year on year to ¥676,193 million.」

「The principal thermal power fuels used in the electric power business are LNG, crude oil and coal. Fuel costs therefore fluctuate depending on trends in crude oil prices, foreign-exchange rates and price negotiations, among other factors, and the Group's performance may be affected as a result. However, the Fuel Cost Adjustment System, which reflects fluctuations in crude oil prices and foreign-exchange rates in electricity tariffs, makes it possible to adjust electricity tariffs when fuel prices fluctuate within a certain range, thereby mitigating the impact on the Group's performance.」