Japanese electric utilities earn 69% of profits from households.TOKYO, May 23 Kyodo
Japan's 10 regional electric utilities earned 69 percent of their combined profit from households, which accounted for only 38 percent of electricity sales volumes on average over the five years from fiscal 2006, government data showed Wednesday Wednesday: see week. .
The data demonstrate utilities' heavy reliance on sales to the residential sector, for which charges are higher and more regulated than the corporate sector including factories and office buildings.
Electricity charges for the corporate sector have been deregulated and are negotiated by utilities and customers, while those for the residential sector are subject to government approval.
Among the 10 utilities, Tokyo Electric Power Co. was most reliant on the residential sector, earning 91 percent of its profit from the sector, followed by 90 percent at Okinawa Okinawa (ō'kĭnä`wä), island (1990 pop. 1,222,458), 454 sq mi (1,176 sq km), W Pacific Ocean, SW of Kyushu; a part of Okinawa prefecture, Japan. It is the largest of the Okinawa Islands in the Ryukyu Islands archipelago. Electric Power Co. and 77 percent at Chugoku Electric Power Co.
Tokyo Electric has asked the government to approve an average 10.28 percent hike in charges for the residential sector starting in July July: see month. on condition that its Kashiwazaki-Kariwa nuclear plant restarts within the business year starting next April.
But the utility said Wednesday the average hike could rise to 15.87 percent if the nuclear plant in Niigata Prefecture fails to resume operation.
TEPCO TEPCO Tokyo Electric Power Co. (Japan) is struggling to turn around its business following the nuclear crisis at its Fukushima Daiichi power plant last year, which has left the utility facing massive compensation claims and higher fuel costs for thermal power generation in the absence of nuclear power.