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Kyushu Electric Power Company Inc. announced the Outline of Business Management Plan for FY2007, the action plan to tackle various business challenges in line with the Midterm Management Policy for FY2005-2009 with a view toward being a company chosen by customers, shareholders and investors in the midst of increasingly fierce competition in the energy market.
| 1. |
Management Objectives (page 1 – 2)
We set our management objectives in Midterm Management Policy for FY2005-2009. |
| 2. |
Business Development Based on the Needs of Customers (page 3 – 8)
| （1） |
Promotion of Total Solution Service
We promote our “total solution service” that comprehensively responds to various needs and address prominent issues, from the “customer first” perspective, to become the company continuously chosen by customers. |
| （2） |
Stimulation of Electricity Demand
We aim to create an additional demand of 3.7 billion kWh by FY2009 (incremental from FY2003).
- Residential customers (1.5 billion kWh):
We aim to increase the amount of electric power sold, with our sights set on the acquisition of 600,000 all-electric houses (cumulative) by FY2009. In FY2007, we set the acquisition target of 88,000 all-electric housings, or new demand creation target of 1.1 billion kWh (cumulative).
- Commercial/industrial customers (2.2 billion kWh):
We aim to increase the sales volume by vigorously promote our finely tuned Total Solution Services including the proposal to introduce electrical air conditioning systems and all-electric kitchen appliances. In FY2007, we set the new demand creation target of 2 billion kWh (cumulative).
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| （3） |
Business Expansion Centering on Energy Business
We will expand and strengthen our profit base by taking full advantage of our group's management resources and by developing new business areas while focusing on energy business as our core activity. |
| （4） |
Efforts to Attract Enterprises
From the viewpoint of generating new electric demand and creating business opportunities for our group, we energetically develop activities to attract enterprises. |
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| 3. |
Establishment of the Reliable Business Foundation (page 9 – 13)
| （1） |
Actual Electricity Sales and Outlook
For FY2006, we estimate 84.6 billion kWh, up 2.0% (3.4% after adjustment for the effect of climate changes) over the previous year in electricity sales, and 16.81 million kW, up 5.8% (3.3% after adjustment) over the previous year in peak electricity demand.
We anticipate a modest but steady increase of electric demand mainly in the residential sector and estimate the average annual increase rates in electricity sales and peak demand to be 0.7% (0.9% after adjustment) and 0.9% (0.9% after adjustment), respectively for the period from FY2005 to FY2016.
For FY2007, we estimate 85.5 billion kWh, up 1.1% (1.9% after adjustment for the effect of climate change and corrected for the leap year) over the previous year in electricity sales, and 16.72 million kW, down 0.5% (1.8% after adjustment) over the previous year in peak electricity demand.
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| （2） |
Measures for Long-Term Stable Supply of Electricity
In response to increasing electric power demand, we are committed to the long-term supply of electricity by promoting efficient use of our facilities while assuring environment-friendly operation and taking active measures to address global environmental issues, so that our customers maintain a comfortable lifestyle with a sense of security.
Regarding our power source development plan, we promote balanced power source development centered on nuclear power, taking into consideration energy security, economic efficiency, and environmental compliance. Therefore, environmental surveys are underway on the premises of Sendai Nuclear Power Station with the aim of developing an additional unit in the late 2010s.
[Main power source development plan]
| Classification |
Type |
Power Plant
&
Unit |
Output
(Unit: 10,000 kW) |
Construction schedule |
| Commencement of work |
Commencement of commercial operation |
| Under construction |
Steam power |
Matsuura unit2 |
100 |
March 2001 |
FY2023 or later |
| Hydro power |
Omarugawa |
120 |
February 1999 |
(300,000 kW) July 2007 |
| (300,000 kW) July 2008 |
| (300,000 kW) July 2010 |
| (300,000 kW) July 2011 |
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| （3） |
Measures for our Pluthermal Project
We are working toward starting the Pluthermal project by around FY2010 at Genkai Nuclear Power Station Unit 3 and the procedures for MOX fuel processing and transportation are currently underway. We committed to disclose related information promptly and to making every effort to gain local residents' understanding regarding our Pluthermal project, which places the utmost priority on maintaining safety at the nuclear power station. |
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| 4. |
Measures for Management Efficiency Improvement (page 14 – 18)
| （1） |
Capital Investment
We set the annual average capital investment of \200 billion as our target for this 5-year period from FY2005 to FY2009. Our future capital investment is expected to increase as we take measures to augment facilities and equipment to cope with the increase in demand and to maintain electric supply reliability. We ensure greater efficiency in our capital investment by reviewing design standards and specifications. |
| （2） |
Maintenance and Miscellaneous Costs
To reduce maintenance and miscellaneous costs, we strive to streamline our business procedures and enhance overall business efficiency as well as to make the maintenance of our facilities more efficient and sophisticated by reviewing our inspection and maintenance processes. |
| （3） |
Business Operation
Aiming at achieving a 10% improvement in labor productivity (electricity sales volume per employee) by FY2009, we are endeavoring to further improve operational efficiency by reforming business processes through greater utilization of information technology. |
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| 5. |
Efforts toward Corporate Social Responsibilities (CSR) (page 19 – 24)
Regarding our efforts toward CSR, our basic mission is to continue stable and efficient supply of electricity to our customers while prioritizing safety. We intend to actively follow this mission and promote compliance management, environmental management, and activities to cooperate with the local community and society. |
| 6. |
Efforts toward improvement of structural capabilities (page 25 – 28)
As well as the establishment of the corporate governance structure and the enhancement of the group management base, we promote efforts to improve the motivation and capabilities of our employees as well as the technological capabilities of Kyushu Electric Power Group. |
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