July 28, 2008

Tokyo Electric Power May Raise Electricity Rate By 800 Yen in Jan.

Tokyo, July 28 (Jiji Press)--Tokyo Electric Power Co. said Monday that it may raise its monthly electricity rate at ordinary households by some 800 yen to 7,597 yen in January 2008 if crude oil prices continue to rise.

The company reported a plan to overhaul its electricity rate structure to the Ministry of Economy, Trade and Industry, following the recent surge in fuel costs.

For the period until the end of this year, it will keep rates unchanged through management efforts.

Even after the envisaged hike, Tokyo Electric still forecasts a record group net loss of 280 billion yen for fiscal 2008.

For the year to next March, the company projects its first-ever group recurring loss, at 425 billion yen.

It expects to pay an annual dividend of 60 yen per share for fiscal 2008, down 5 yen from the previous year.

Tokyo Electric said the 800-yen hike will be carried out in the first drastic rate structure overhaul since April 2006 if crude oil prices rise to 130 dollars per barrel.

President Masataka Shimizu told a press conference that crude oil prices have risen to levels beyond the limit for the company to absorb higher costs through spending cuts, which are estimated to total 270 billion yen.[EARNINGS]END

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