Major Japanese Utilities Post Quarterly Losses
A majority of Japan's major power companies have posted losses for the April-to-June period. The red ink was caused by continued high fuel costs on the back of the conflict in Ukraine.
Seven out of 10 power firms booked net losses for the last quarter. Tokyo Electric Power Company, or TEPCO, reported a group net loss of 67 billion yen, or 500 million dollars.
Six other electric companies across the nation were also in the red. They are the utilities covering the Tohoku, Hokuriku, Kansai, Chugoku, Kyushu and Okinawa regions.
Russia's invasion of Ukraine has pushed up the cost of liquefied natural gas and coal used for thermal-power generation.
The loss-making utilities were not able to raise their electricity rates enough to cover the additional fuel costs.
Nine of the 10 power firms have already passed on as much of the extra fuel costs to customers as they are allowed to under government-approved rate plans.