Chugoku Electric to Log Record Net Loss Partly Due to FTC Fine
Tokyo, Dec. 2 (Jiji Press)--Japan's Chugoku Electric Power Co. <9504> said Friday it expects to report a record consolidated net loss of 209.7 billion yen in fiscal 2022, which will end in March next year, partly due to a fine linked to a price cartel involving the company.
The major power utility, based in the western Japan city of Hiroshima, said it will book a special loss of 70.7 billion yen linked to the Fair Trade Commission's plan to impose under the antimonopoly law the fine on the company and other power firms for forming a price cartel that would restrict competition for customers.
Chugoku Electric was already expected to incur a net loss of 139 billion yen, against the backdrop of fuel price rises caused by Russia's invasion of Ukraine. The company expanded the loss estimate due to the price cartel issue.
Last month, Chugoku Electric applied for government approval to raise regulated electricity rates for households. The price hike plan by the cartel-linked firm may draw a backlash from customers.
The fine to be imposed on the power companies, also including Chubu Electric Power Co. <9502> and Kyushu Electric Power Co. <9508>, is expected to total about 100 billion yen, a record high for an antitrust fine.
[Copyright The Jiji Press, Ltd.]