TEPCO to sell gas and electricity throughout Japan

February 16, 2015

TEPCO plans to expand business across Japan from 2016

http://ajw.asahi.com/article/business/AJ201502160023

THE ASAHI SHIMBUN

Tokyo Electric Power Co., recipient of a government bailout to deal with the crisis at its crippled Fukushima No. 1 nuclear power plant, now plans to expand its power distribution network across Japan, according to President Naomi Hirose.

“We will expand to regions where we have no market share,” Hirose said in a recent interview with The Asahi Shimbun.

Although only a single utility is currently allowed to supply electricity in each region, power companies will be allowed to provide electricity to households outside its own assigned area from April 2016.

For entry into areas TEPCO does not serve, Hirose said the utility is considering working with mobile phone carriers and other telecommunication companies that have nationwide customer networks.

TEPCO will announce the outline of new services by the end of fiscal 2015.

According to the president, TEPCO intends to boost its share in new markets by offering a discount to customers who use services of both TEPCO and its partner telecommunication firms as a package. It will also commission alliance companies to collect electricity bills.

As of the end of fiscal 2013, TEPCO covers 27.01 million households mainly in the Tokyo metropolitan area.

As utilities are expected to be allowed to provide gas for households across Japan from 2017, TEPCO also plans to sell electricity and gas as a package throughout the country in the future.

TEPCO struggled financially in the aftermath of the Fukushima nuclear crisis, triggered by the Great East Japan Earthquake and tsunami on March 11, 2011.

It was forced to accept financial assistance from the government to provide compensation to victims of the accident and to deal with the disaster. The utility also raised electricity rates for household and corporate customers.

(This article was written by Daiki Koga and Tomoyoshi Otsu.)