The Kansai Electric Power Company, Incorporated

Business Details

The core segment of the Kansai Electric Power Group, delivering new value through a wide range of solutions including electricity, gas, and Utility Services. Offerings span from household lighting and power rate services to corporate-oriented Zero Carbon Package / Corporate PPA and energy management systems. The segment holds a competitive power source portfolio combining nuclear, hydro, thermal, and renewable energy, and operates both domestically and internationally. Segment assets stood at ¥8,708,742 million, accounting for the majority of consolidated total assets.

Recent Overview

Decrease in electricity sales revenue and reduced sales volume to other companies led to lower revenue and profit

In FY2026 (ending March 2026), the Energy Business saw external sales decline to ¥3,261,386 million (down ¥279,392 million, or 7.9%, year on year), mainly due to a decrease in electricity sales revenue. This was affected by a 11.4% decline in electricity sold to other companies, from 40,523 million kWh to 35,918 million kWh. Although ordinary expenses were also reduced due to lower purchased power costs from other companies and lower thermal fuel costs, segment profit declined to ¥377,368 million (down ¥33,952 million, or 8.3%, year on year). As the final year of the medium-term management plan, financial targets were largely achieved.

Key Products

Growth Drivers

• Maintaining a low-cost, low-carbon power source through maximum utilization of nuclear power (utilization rate of 84.1% in FY2026) and advancing surveys and technology development toward the installation of successor reactors
• Increase in retail electricity sales volume (116,273 million kWh in FY2026, up 0.7% year on year), particularly 1.5% growth in the power segment (corporate customers)
• Active development of renewable energy at suitable sites nationwide, and development/replacement of LNG thermal power premised on future zero-carbonization
• Integrated provision of energy (electricity and gas) and solutions under the "Energy 3.0" strategy, and pursuit of new business areas
• Expansion as a long-term service provider to customers nationwide and overseas, beyond the Kansai area

Risks

• The nuclear utilization rate is expected to decline from 84.1% to around 70% in the forecast for FY2027 (ending March 2027), creating downward pressure on Energy Business earnings (a 1% increase in nuclear utilization rate impacts earnings by approximately +¥5.7 billion)
• Risk of increased thermal fuel costs due to rising fuel market prices (All Japan Crude Oil CIF price: ¥71.4/barrel actual in FY2025 (ended March 2025) vs. approximately ¥80/barrel forecast for FY2026 (ending March 2026))
• Risk of increased fuel procurement costs due to yen depreciation (¥151/dollar actual in FY2025 (ended March 2025) vs. approximately ¥160/dollar forecast for FY2026 (ending March 2026)) (a ¥1/dollar depreciation impacts earnings by approximately -¥1.2 billion)
• Risk of fluctuations in electricity market prices (dependence on the wholesale electricity trading market and volatility in sales volume to other companies)
• Risk of increased safety measure costs due to the aging of nuclear plants, and increased general expenses and repair costs due to inflation