Kyushu Electric Power Company, Incorporated

Business Details

This segment mainly comprises the domestic power generation and retail electricity business, with Kyushu Electric Power Company, Incorporated playing the central role. It operates a diverse energy mix including hydro, thermal, nuclear, and new energy sources, and supplies electricity through retail sales (lighting & power) and wholesale sales. In April 2025, the retail electricity business of Kyuden Mirai Energia Co., Inc. was transferred to Kyuden Next Co., Inc., which was incorporated into this segment. It is the most important segment, accounting for the majority of the Group's overall revenue.

Recent Overview

Net sales decreased, but ordinary income improved significantly, up 19.2% year on year, due to lower fuel costs.

In the Power Generation & Sales segment for FY2026 (ending March 2026), retail electricity sales volume declined 9.3% year on year to 68.6 billion kWh due to a decrease in contracted electricity within the service area, and net sales (before elimination of inter-segment transactions) came to only ¥1,842,917 million, down 8.4% year on year. On the other hand, a decrease in supply-demand related costs due to lower fuel prices and an increase in wholesale electricity sales volume (up 16.9% year on year) contributed to a significant improvement in ordinary income, which rose 19.2% year on year to ¥136,420 million. Note that from this fiscal year, Kyuden Next Co., Inc. has been incorporated into this segment.

Key Products

Growth Drivers

• Decline in unit power generation cost and improved profit margin due to a decrease in supply-demand related costs from lower fuel prices
• Expansion of wholesale sales revenue driven by an increase in wholesale electricity sales volume (up 16.9% year on year to 29.6 billion kWh due to expanded exchange trading)
• Maximum utilization of low-cost nuclear power through continued safe and stable operation (capacity utilization rate of 82.3%)
• Realization of intra-group synergies through the integration of Kyuden Next Co., Inc.'s retail electricity business
• Strengthening of power generation and transmission infrastructure through continued capital expenditures (¥167,789 million)

Risks

• Risk of earnings volatility due to timing lags in the fuel cost adjustment system (a shift from a gain to a loss is expected in the FY2027 (ending March 2027) forecast)
• Risk of continued decline in retail electricity sales volume (ongoing decline in contracted electricity within the service area; down 9.3% year on year in FY2026 ending March 2026)
• Fluctuations in power generation costs due to the operating status of nuclear power plants (periodic inspections, regulatory compliance) (capacity utilization rate of 82.3% in the current period, down from 88.6% in the prior period)
• Impact on earnings from fluctuations in wholesale electricity trading prices
• Increase in supply-demand adjustment costs associated with curtailment of renewable energy output
• Risk of fluctuations in power generation volume and demand volume due to temperature variations (drought, cool summers, warm winters, etc.)