Corporations are leaving Tepco for the increasing electricity price

Corporations to buy electricity from Tepco are starting to leave Tepco since they announced to raise the fee.

SMBC Nikko securities estimate the raised electricity cost will decrease ordinary profit about by 1.5% of all the companies in Japanese stock market.

More companies are starting to buy electricity from Power Producer and Supplier (PPS), who are new entries to the power industry.

Since 2000, Tepco has already lost its share of 4.1 million kW for PPS companies. It will be accelerated.

Kose, a cosmetic company has decided to invest a few hundred million yen into off-grid power system of their major factory in Gunma so they can cover around the half of the electricity consumption when it’s the maximum. They estimate still it would be cheaper than buying electricity from Tepco.

 

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