Tepco posts US$7 billion net loss for 2012

Its third straight yearly loss due to the Fukushima nuclear disaster.

Tokyo Electric Power Company reported a group net loss of US$7 billion for the business year ended in March or 13% less than its US$8 billion loss in the 2011 business year.

President Naomi Hirose said that unless Tepco makes efforts with considerable determination, it will be difficult to move into the black.

Tepco posted an operating loss of US$2.3 billion compared with a loss of US$2.8 billion the previous year. Group sales increased 11.7% to US$61 billion, partly because

Tepco, which has about 30 million customers in Tokyo, raised household rates by about 8.5% in September 2012.

It operates seven nuclear reactors at its Kashiwazaki-Kariwa plant in Niigata Prefecture, but all are idled. Restarting its idled reactors is seen as key to helping Tepco move into the black in the year through March 2014 because it will help to cut costs for expensive fossil fuel imports.

Japan’s Nuclear Regulation Authority, however, is not expected to accept applications for the resumption of any of the nation’s halted reactors until new safety requirements take effect in July.

Of Japan’s 10 regional utilities, eight, including Tepco, posted group net losses for fiscal 2012 amid the prolonged shutdown of nuclear reactors, only two of which have been restarted.