Three major Japanese utilities report $1 bln loss on high fuel prices

Hokuriku Electric Power Co

27/04/2023 08:36

By Katya Golubkova and Yuka Obayashi
       TOKYO, April 27 (Reuters) - Japan's Hokuriku Electric
Power Co  9505.T , Hokkaido Electric Power Co Inc  9509.T  and
Shikoku Electric Power Co Inc  9507.T  reported a combined loss
of 136 billion yen ($1 billion) for the 2022/23 financial year
on Thursday, citing high fuel prices.
    The trio are among seven utilities which requested hikes in
electricity rates from April and June to offset high input costs
and for funds to aid transition to renewable energy. The
government, seeking to address a historically high rate of
inflation, delayed the requests and asked to reassess costs.
    Hokuriku Electric's loss reached 88.45 billion yen in the
year ended March 31, the deepest since it started disclosing
earnings in 1994, and compared with a loss of 7 billion yen a
year earlier. 
    Hokkaido Electric's loss widened to 24.9 billion yen from
9.5 billion yen a year prior, its first loss in nearly a decade,
while Shikoku Electric reported a loss of 23 billion yen versus
the previous year's loss of 6.3 billion yen. 
    Hokuriku Electric earlier said revenue would take a hit of
about 1.5 billion yen a month without the requested rate hikes.
    Global energy prices have eased from peaks touched in the
middle of last year after Russia's invasion of Ukraine
exacerbated a post-pandemic energy crisis. 
    Still, input costs are high and utilities also need to align
with the government's 2050 zero-emissions goal. 
    Pressure only increased this month after the Group of Seven
rich nations - chaired by Japan this year - reaffirmed its goal
to achieve a fully or predominantly decarbonised power sector by
2035 and pushed for major new renewable energy goals.
    ($1 = 133.8100 yen)

 (Reporting by Katya Golubkova and Yuka Obayashi; Editing by
Christopher Cushing)
 ((ekaterina.golubkova@thomsonreuters.com;))