Chubu Electric Power Company,Incorporated was reported to have overcharged more than 5 million customers due to errors in calculating electricity bills, and its share price edged lower in trading on 10 September. Meanwhile, results for the first quarter of the fiscal year ending March 2027 showed a substantial decline in earnings despite higher revenue.
The article covers share price movements since early September and the details of the electricity bill calculation errors reported on 10 September. According to the report, the company had allegedly overcharged customers over an extended period, while its share price traded at ¥3,053 during the day, down ¥12 from the previous day.
According to its financial results, revenue for the first quarter of the fiscal year ending March 2027 rose year on year to ¥825.8 billion, while operating loss was ¥25.1 billion, ordinary profit was ¥27.1 billion and net income was ¥35.2 billion, representing a substantial decline in earnings. The full-year forecast also calls for higher revenue but a substantial year-on-year decline in earnings.
Earnings have continued to deteriorate over the past 12 quarters, with declines in net profit margin and EPS, as well as weakness in operating margin, identified as areas of concern. Meanwhile, the equity ratio has risen gradually, indicating a modest improvement in financial stability.
Future earnings checkpoints include optimization of power procurement, a review of pricing plans and stronger procurement capabilities at JERA. Risks from fluctuations in fuel and electricity prices and the impact of nuclear power plant reviews are also cited as factors requiring attention.