ENVALITH
東京電力ホールディングス株式会社 logo

Tokyo Electric Power Company Holdings, Incorporated.

9501・Prime Market・Electric Power & Gas

Official website
東京電力ホールディングス株式会社 logo
Tokyo Electric Power Company Holdings, Incorporated.9501

Business

Tokyo Electric Power Company Holdings is a holding company that operates five businesses—nuclear power, transmission and distribution, retail, renewable energy, and thermal power fuel—through its core operating subsidiaries (Power Grid, Energy Partner, Renewable Power, and Fuel & Power). The company supplies electricity to household, corporate, and extra-high-voltage customers primarily in the Kanto region, and also participates in the thermal power and LNG businesses through its JERA Equity Method Investment. With 63 consolidated subsidiaries and 74 affiliated companies, the company recorded net sales of ¥6,328,574 million (FY2026, ending March 2026). While bearing responsibility for the decommissioning of and compensation related to the Fukushima Daiichi Nuclear Power Station, the company has set as its top management priority the dual goals of responding to growing GX and DX demand and enhancing corporate value.

Business Model

The core of revenue consists of Energy Partner (retail electricity and gas sales, net sales of ¥4,989,666 million) and Power Grid (wheeling revenue under revenue cap regulation, net sales of ¥2,294,368 million). Fuel & Power's main revenue source is equity method investment profit from JERA (¥97,734 million), while Renewable Power accumulates hydroelectric and renewable energy generation revenue. Holdings receives nuclear power generation revenue and dividends from core operating companies, forming a structure that generates decommissioning and compensation costs while targeting approximately ¥500,000 million in annual fund securing across the group as a whole.

Company Strengths

TEPCO Power Grid exclusively operates transmission and distribution infrastructure in the Kanto region, securing stable wheeling revenue of ¥1,610,313 million (FY2026, ending March 2026) under the revenue cap system. The generator-side charging system introduced in April 2024 has also created new revenue opportunities, and as a regulated business, it has entry barriers that make competitive entry difficult.

With Kashiwazaki-Kariwa Nuclear Power Station Unit 6 starting up its reactor in January 2026, resuming power transmission in February, and commencing commercial operation in April, the Holdings segment's ordinary income turned from a loss of ¥50,713 million in the previous fiscal year to a profit of ¥128,967 million. Preparations for restarting Unit 7 are also underway, and the addition of a low-cost power source is anticipated.

Through its equity method investment in JERA, Fuel & Power recorded equity in earnings of JERA of ¥97,734 million in FY2026 (ending March 2026), up 30.5% year on year. JERA has been strengthening its business foundation, including commencing new LNG procurement from the United States and establishing JERA Nex bp (an offshore wind integration with UK-based bp), functioning as a stable source of earnings for the TEPCO Group.

ENVALITH's Perspective

Ordinary income for FY2026 (ending March 2026) rose sharply to ¥417,326 million (up 64.0% year on year), driven by a favorable timing reversal in the fuel cost adjustment system and the effect of the restart of Kashiwazaki-Kariwa Unit 6. However, the company recorded an extraordinary loss from a disaster of ¥913,893 million due to a revision of the fuel debris removal method, causing net loss attributable to owners of the parent to fall to ¥454,263 million. Changes in decommissioning cost estimates constitute a structural risk that could recur repeatedly going forward, and the divergence between ordinary income and net income may become a recurring pattern.

The company left all items of its earnings forecast for FY2027 (ending March 2027) undetermined, citing uncertainty in the outlook for fuel prices and other factors due to the situation in the Middle East and other issues. As an external factor, the timing mismatch effect from the fuel cost adjustment system is a structural source of earnings volatility, and international market conditions for LNG, crude oil, and coal, as well as exchange rate movements, will significantly affect performance. Progress on the restart of Kashiwazaki-Kariwa Unit 7 holds the key to an upside scenario, while a delay in the restart would pressure earnings through increased thermal fuel costs.

The equity ratio at the end of FY2026 (ending March 2026) stood at 21.8% (down 3.3 percentage points from 25.1% in the previous period), with net assets declining to ¥3,418,351 million. Interest-bearing debt reached approximately ¥6,633,700 million (including short-term borrowings of ¥2,926,354 million and corporate bonds of ¥3,321,000 million), equivalent to 43% of total assets. Against expenditures of ¥909,007 million for the acquisition of fixed assets, operating cash flow was only ¥560,333 million, resulting in investing cash flow showing a net outflow of ¥663,604 million. In a rising interest rate environment, an increase in interest expenses (¥92,583 million for the current period) would further heighten the financial burden.

Growth Strategy

In parallel with fulfilling decommissioning and compensation responsibilities, the company is strengthening its earnings base through nuclear power restart, renewable energy expansion, and capturing DX/GX demand

Unit 6 has resumed power transmission and continues stable operation. Construction of specified safety facilities against severe accidents is proceeding with safety as the top priority, aiming for a state in which the power station can operate stably and continuously. Stable operation is expected to improve earnings through reduced thermal fuel costs and securing low-cost power sources.

Based on the "Mid-to-Long-Term Roadmap for Decommissioning 2026" revised on March 26, 2026, the company continues to accumulate knowledge through trial retrieval of fuel debris from Unit 2. While the goal is completion of decommissioning measures 30 to 40 years from now, ¥903,000 million in retrieval preparation costs was newly recorded in the current period, and the risk of future changes in cost estimates remains.

The company is advancing domestic and overseas renewable power source development, including domestic hydroelectric repowering and floating offshore wind power with UK-based Flotation Energy. Segment profit for FY2026 (ending March 2026) was ¥40,399 million. Increasing demand for renewable power sources amid rising electricity demand driven by GX and DX progress serves as a tailwind in the external environment.

To capture the increase in electricity demand accompanying the construction and expansion of data centers and semiconductor plants, the company is advancing grid reinforcement including the construction of new ultra-high-voltage substations. Capital expenditure for FY2026 (ending March 2026) was ¥909,007 million, up from ¥833,323 million in the previous fiscal year. Equity method investment income from Power Grid also expanded from ¥16,555 million in the previous fiscal year to ¥30,174 million.

To achieve both securing funds necessary for compensation and decommissioning and enhancing corporate value, the company is advancing management rationalization, asset sales, and the concretization of alliances. In the current period, gain on sale of affiliated company shares of ¥103,099 million was recorded. Regarding alliances, detailed examination is underway in an internal committee centered on outside directors.

Last updated: July 19, 2026