Fluctuations in fuel prices and foreign exchange rates
First written in FY2019. 4 of 14 entries say "Materialised", first in FY2023-Q1. Latest entry: 2026-10-30.
The Okinawa Electric Power Company moved to the "Worse" side of this theme in 2026, 9 years after the typical company in this theme (2017).
The whole theme swung hardest in 2017: 5 of 8 companies on the "Worse" side.
3 other companies' latest entry also says "Materialised".
- FY2026Added fuel procurement risk arising from the situation in the Middle EastAnnual report
「Amid concerns over the impact of the recent escalation of tensions in the Middle East on the stable procurement of fuel, the Company currently procures fuel oil from domestic refineries, coal mainly from Indonesia and Australia, and LNG mainly from Australia, and there is currently no significant impact.」
In addition to fuel price and foreign exchange fluctuation risks, procurement risk arising from the situation in the Middle East was explicitly identified. At the same time, the Company stated that there is currently no significant impact and disclosed its procurement sources. - FY2024-Q3RestatedAnnual report
「The electricity business is operating in an extremely challenging environment due to declining demand resulting from customers switching contracts to other providers, as well as soaring resource prices associated with the situation in Ukraine and the yen's continued depreciation against foreign currencies.」
The risks to the electricity business from declining demand due to contract switching, soaring resource prices and the yen's depreciation continue to be identified. - FY2023Measures taken to address fuel price and yen depreciation risksAnnual report
「In fiscal 2022, the average fuel price under the Fuel Cost Adjustment System substantially exceeded the cap due to the impact of soaring fuel prices attributable to the situation in Ukraine and the yen's depreciation, and the portion above the cap could not be reflected in tariffs.」
The failure to reflect in tariffs the costs arising from soaring fuel prices and the yen's depreciation continued throughout the fiscal year. The response described consisted of an application for a regulated tariff increase and implementation of new tariffs in the regulated segment, and tariff reviews in the liberalized segment. - FY2023-Q3RestatedAnnual report
「The Fuel Cost Adjustment System, which reflects changes in fuel prices and foreign exchange rates in electricity tariffs, has mitigated the impact on the Group's performance to some extent, but may not fully incorporate significant fluctuations in fuel prices and other factors. Particularly when the impact of soaring fuel prices attributable to the situation in Ukraine and the yen's depreciation becomes pronounced, the average fuel price under the Fuel Cost Adjustment System substantially exceeds the cap, and the portion above the cap cannot be reflected in tariffs.」
The risk that costs cannot be fully reflected in tariffs has persisted due to soaring fuel prices, the yen's depreciation and the average fuel price exceeding the cap under the Fuel Cost Adjustment System. - FY2023-Q2WorsenedAnnual report
「Particularly amid the marked rise in fuel prices attributable to the situation in Ukraine, the average fuel price under the Fuel Cost Adjustment System has substantially exceeded the cap, and the portion above the cap cannot be reflected in tariffs.」
The continued combination of soaring fuel prices and the average fuel price exceeding the cap under the Fuel Cost Adjustment System was described in greater detail, including the resulting costs that cannot be reflected in tariffs. - FY2023-Q1MaterialisedAnnual report
「Particularly amid the marked rise in fuel prices since Russia's invasion of Ukraine, the average fuel price under the Fuel Cost Adjustment System has exceeded the cap, and the portion above the cap cannot be reflected in tariffs.」
The risk that higher costs cannot be fully reflected in tariffs has actually materialized due to soaring fuel prices and the average fuel price exceeding the cap under the Fuel Cost Adjustment System. - FY2020MitigatedAnnual report
「However, the Group is working to diversify the risk of fuel price fluctuations by pursuing a balanced power generation mix and taking other measures.」
Risk diversification through a balanced power generation mix was newly stated as a response to fuel price and foreign exchange fluctuation risks. - FY2019First statedAnnual report
「The Group's principal thermal power fuels are coal, heavy fuel oil and LNG, so fuel costs fluctuate depending on trends in fuel prices, foreign exchange rates and other factors. Although the Fuel Cost Adjustment System reflects changes in fuel prices and foreign exchange rates in electricity tariffs, significant fluctuations in fuel prices and other factors could affect the Group's performance.」
Although the Fuel Cost Adjustment System is in place, the impact on performance of significant fluctuations in coal, heavy fuel oil and LNG prices and foreign exchange rates is separately identified as a risk.