Supply Chain Council of European Union | Scceu.org
Procurement

Japan energy giant looks to diversify fuel procurement as Ukraine crisis continues

In an interview with The Yomiuri Shimbun, Kobayakawa suggested that TEPCO would secure nonfossil energy resources such as renewable energies in the mid and long term.

There are fears that the sanctions imposed on Moscow by Japan, the United States and Europe could negatively impact supplies of liquified natural gas (LNG) and crude oil produced in Russia. Japan presently has sufficient amounts of these resources, but Kobayakawa expressed concern, saying, “If the fuel price surge continues, it will have a huge impact on energy prices.”

Power companies can pass increased fuel costs on to customers via electricity rates, but there is a cap on the increase. If high fuel prices continue, TEPCO could reach that cap.

“We’d like to make efforts to avoid raising electricity rates as much as possible,” Kobayakawa said.

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