TEPCO criticized for being vague on terms of higher rates for corporate users

TOKYO —

Tokyo Electric Power Co (TEPCO) on Wednesday came under more criticism after it admitted that it had been vague on conditions for hiking electricity bills for corporate users, starting April 1.
In January, TEPCO said the hike in rates will be applied to companies for 50 kilowatts or more, and is expected to bring an extra 400 billion yen annually to its coffers to cover costs of switching to other forms of power.

However, the utility neglected to explain that corporate users won’t have to pay the extra rate until their current contract expires.

TEPCO President Toshio Nishizawa made the announcement on Wednesday and apologized for not having made that point clear in January.

TEPCO says that contracts with 25% of its corporate clients will expire on March 31.

Meanwhile, Trade and Industry Minister Yukio Edano told a news conference that TEPCO had once again shown its mismanagement of issues and called on the utility to do a better job of explaining who the rate hike will apply to and from when, NHK reported.

Nishizawa also said that TEPCO has not yet made a decision on whether rates for consumers will have to be raised. Government approval is needed to raise the utility bill for consumers.

TEPCO has said its fuel costs for fiscal 2012 are expected to increase by about 830 billion yen from the previous year.

Compensation for victims, decontamination expenses and costs for scrapping the plant are likely to balloon to trillions of more yen, and some taxpayer money has already been earmarked for a part of that bill.
 

Japan Today/AFP

  • 12

    some14some

    "TEPCO criticized for being vague...." i thought Japanese were good at understanding 'vague' language among themselves.

  • 8

    Yubaru

    Japanese are even better at being vague when everything is in black and white.

  • 2

    queensNY

    "TEPCO President Toshio Nishizawa made the announcement on Wednesday and apologized for not having made that point clear in January." Yeah, I'm sure he's really sorry. "Meanwhile, Trade and Industry Minister Yukio Edano told a news conference that TEPCO had once again shown its mismanagement of issues" He's the damn minister, instead of just talking about it "once again", do something. Useless.

  • 1

    kiss1969

    I'm not sure if they are being vague. I think they just don't know what they are doing, period!! Isn't there anybody who can take over and pull it all together?

  • 0

    gyouza

    When do the other 75% of contracts expire/rollover?

  • 4

    marcelito

    What.?..TEPCO being vague and mismanaging issues...who would have thought ?... Seriously, when will this cancer company`s senior management be stood down and hauled in front of the courts like they deserve for all the mismanagement, incompetence,negligence , cover ups, lies and the rest of it...? When will it finally be enough ?

  • 3

    GenConsensus

    Everyone keeps saying it, and will continue to, but they should be criticized for a whole lot more!

  • 2

    GW

    Nishizawa also said that TEPCO has not yet made a decision on whether rates for consumers will have to be raised. Government approval is needed to raise the utility bill for consumers.

    THIS BS! My rates jumped 40-45% last fall even tho I shud down some aquariums, cut lights, hot water use etc etc, use the non-electic toyu heater more than the fan heater & still it jumped!

    I have heard others he feel they have been hit, check yr electric of recent months compared to year ago you may be in for a surprise, these SOBs are scamming us!

  • 2

    Elbuda Mexicano

    Geez! What a surprise coming from Tokyo Electric?? NOT!!

  • 3

    gogogo

    Tepco are bumbling fools, couldn't find their way out of a paperbag

  • -2

    DoLittleBeLate

    I think Tepco is being loud and clear about their moral standards, motivations, skills and capabilities. Just wait, soon they'll apologize for not being clear about Dai-ichi having a triple meltdown year ago. It was all a big misunderstanding, see?!? < cough >Says you when you get caught< /cough >

  • 3

    GG2141

    As much as I have trouble believing it I do suspect that TEPCO has scammed me as well. My rates jumped from 11,000 / mo (average winter rate) to 16,000 for no good reason. And continued for two months despite us scrambling to save electricity. Now it is back where it was and not much has changed around the house.

  • 1

    Oz_Monster

    Tokyo need to follow the same direction as Osaka and begin to open up the electric sector to stimulate competition.
    There also needs to be a national referendum to the continued use to nuclear power in this country. Only once the Japanese people have spoken will all governments at all levels and electricity companies be compelled to ACT !

    TEPCO cannot any longer be trusted as a company and have not earned the right or trust of the people to be the sole electric provider for the Tokyo region. TEPCO cannot be allowed to continue to have exclusive market share with this kind of attitude to customer service and safety.

  • 6

    zichi

    There needs to be a separation of companies which generate power and new companies which sell power. The nine mainland power companies have enjoyed a monopoly for decades, just like the telecom NTT use to.

    Just nine power companies and their presidents control the generation and supply of more than 90% of total power.

    The cream on cake is the giant Tokyo account.

  • 0

    valley-of-the-shadows

    corporate users won’t have to pay the extra rate until their current contract expires.

    I have a vision there will be extended contracts for favorable corporate users...

  • 0

    bajhista65

    Hahahaha Corporate users are exempted to pay extra why? Because some of them are share holders of TEPCO and have contributed and lobby for TEPCO.... This is a shot in the dark,,, will someone try to investigate who are the shareholders of Tepco? So we know if there are government officials or former government officials holding stocks. Will JT try it?

  • 0

    Elvensilvan

    So, if I understand the article right, TEPCO would need 830 billion for fuel costs, and that about 100 billion (25% of the expected amount from corporate users whose contracts expire this month).

    That means TEPCO would still need 730 billion yen for fuel, several more billions for compensation (if they do get past the screening processes) and many more for decommissioning.

    Even with salary cuts, I do believe that TEPCO would be needing trillions just to stay afloat. Does the government plan to keep feeding TEPCO's deep pockets with taxpayer money?

  • 2

    zichi

    TEPCO will need at least ¥2 trillion per annum from the government.

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