(Corrects Hokkaido Electric Power Co Inc results in fourth paragraph to reflect consolidated figures, corrects combined loss figure to 134 billion yen)
By Katya Golubkova and Yuka Obayashi
TOKYO (Reuters) – Japan’s Hokuriku Electric Power Co, Hokkaido Electric Power Co Inc and Shikoku Electric Power Co Inc reported a combined loss of 134 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 posted a loss of 22.2 billion yen from 7 billion yen profit 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)
