Hokkaido Electric Power Co., Inc.
Basic Information
- Stock Code
- 9509
- Industry
- Electric Power and Gas Industry
- Category Detail
- Electric Power & Gas
- Prefecture
- Hokkaido
- Establishment Year
- May 1951
- Listing Year
- August 1951
- Official Website
- https://www.hepco.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Remixpoint, Tokyo Electric Power Company Holdings, Chubu Electric Power, Kansai Electric Power, Chugoku Electric Power, Hokuriku Electric Power, Tohoku Electric Power, Shikoku Electric Power, Kyushu Electric Power, J-Power
Overview
Hokkaido Electric Power Co., Inc. is an electric power company founded in 1951 and based in Hokkaido. It owns thermal, hydroelectric, and nuclear power plants and serves as an infrastructure operator responsible for stable power supply to the region.
Current Situation
Hokkaido Electric Power Co., Inc. recorded consolidated sales of approximately 888.8 billion yen for the fiscal year ended March 2023, but both ordinary income and net income turned to losses. Its core business is power supply services with a wide-area transmission and distribution network, aiming for stable supply through a combination of thermal, nuclear, hydroelectric, and renewable energy sources. Under the jurisdiction of the Ministry of Economy, Trade and Industry, it focuses on complying with safety standards for nuclear power plants while actively promoting fuel switching and renewable energy introduction for decarbonization. Some thermal power plants are scheduled for decommissioning in 2027, and it is working on efficiency improvements such as introducing combined cycle at the Ishikari Bay New Port Power Station. In 2023, it implemented measures to prevent recurrence following a labeling violation issue with its electricity and city gas bundled plan. Emphasizing technological innovation and collaboration with local communities, it is advancing management reforms with consideration for sustainability. Going forward, it aims for medium- to long-term growth by restoring trust in transmission and distribution and preparing for the restart of nuclear facilities.
Trivia
Interesting Facts
- It is the only regional comprehensive power supply company in Hokkaido
- Safety measures are underway for restarting nuclear power plants
- Experienced a Hokkaido-wide blackout during the Hokkaido Eastern Iburi Earthquake
- Introduced Japan's first variable-speed pumped-storage power plant
- Its mascot 'Watt-kun', established in 1973, has high recognition
- Has spun off transmission and distribution business for regionally separated management
- Some thermal power plants are scheduled for decommissioning by 2027
- Long-term continuation of regionally rooted advertising and local event support
- Expands wide range of related businesses through multiple subsidiaries
- Publicly announced strategy aiming for decarbonized society realization by 2030
Hidden Connections
- Business partnership with Hokkaido Gas for electricity-gas bundled plans
- Member of OCCTO (Organization for Cross-regional Coordination of Transmission Operators), collaborating with power companies nationwide
- Collaborates with major power companies like J-POWER and Kansai Electric Power via wholesale power contracts
- Established relationships with heavy electrical manufacturers such as Mitsubishi Heavy Industries and Toshiba for power generation equipment
- Collaborates with local universities on energy technology and renewable energy research
- Strengthens financial ties as major shareholders include regional key banks
- Collaborates with multiple telecom companies in Hokkaido on network development
- Builds partnerships with local governments through social contribution activities
Future Outlook
Growth Drivers
- Expansion of renewable energy demand due to decarbonization
- Recovery of generation capacity through nuclear power plant restarts
- Strengthening transmission and distribution networks for power liberalization
- Spread of energy-saving technologies and smart grids
- Deepening of regionally rooted services and improved customer satisfaction
- Acceleration of digital transformation
- Promotion of clean energy in response to stricter environmental regulations
- Stable increase in power demand from Hokkaido's industry and tourism revitalization
- Regional revitalization support through collaboration with local governments
- Expansion of technological collaboration with external partners
Strategic Goals
- Safe restart and stable operation of nuclear power plants
- Achievement of over 30% renewable energy ratio
- Halve CO2 emissions by 2030
- Complete aging measures and smartization of transmission and distribution equipment
- Strengthen coexistence and co-prosperity with local communities
- Expand one-stop electricity and gas services
- Achieve 30% improvement in operational efficiency through DX
- Strengthen BCP (business continuity planning) and disaster response capabilities
- Enhance organizational strength through diverse talent utilization
- Establish sustainable financial base
Business Segments
Transmission and Distribution Services
- Overview
- Maintains and manages the power transmission and distribution network across Hokkaido, providing high-quality power supply.
- Competitiveness
- Extensive transmission and distribution network
- Customers
-
- Local households
- Factories and manufacturing
- Commercial facilities
- Public institutions
- Power wholesalers
- Products
-
- Maintenance and management of power transmission and distribution equipment
- Power quality maintenance
- Outage response
- Power supply management
Power Generation Business
- Overview
- Generates power using diverse methods and supplies stable, low-cost electricity to the Hokkaido region.
- Competitiveness
- Supply stability through diverse energy mix
- Customers
-
- Power users in Hokkaido
- Local governments
- Independent power producers
- Products
-
- Coal-fired thermal
- Nuclear power generation
- Hydroelectric power generation
- Renewable energy
Energy Management Services
- Overview
- Specialized services supporting corporate energy cost reduction and efficiency improvements.
- Competitiveness
- Consulting capabilities leveraging power supply expertise
- Customers
-
- Factories
- Commercial facilities
- Government offices
- Products
-
- Power usage optimization services
- Energy-saving consulting
- Energy monitoring systems
Equipment Maintenance and Construction Contracting
- Overview
- Undertakes construction and maintenance of power supply infrastructure in the Hokkaido region.
- Competitiveness
- Regional network and abundant technical expertise
- Customers
-
- Transmission and distribution operators in Hokkaido
- Construction companies
- Local governments
- Products
-
- Design and construction of transmission and distribution equipment
- Inspection and maintenance services
- Electrical construction
Electricity and Gas Retail Business
- Overview
- Provides electricity and gas retail services tailored to customer needs.
- Competitiveness
- Local base and convenience of electricity-gas bundles
- Customers
-
- General households
- Small and medium enterprises
- Corporate customers
- Products
-
- Electricity retail services
- City gas retail services
- Bundled plans
Renewable Energy Power Plant Development and Operation
- Overview
- Develops and operates facilities to promote renewable energy adoption.
- Competitiveness
- Stable operations utilizing local resources
- Customers
-
- Local governments
- Corporate investors
- Transmission and distribution operators
- Products
-
- Solar power
- Wind power
- Geothermal power plant operations
- Renewable energy introduction support
Disaster Prevention and Crisis Management Support
- Overview
- Provides rapid response to natural disasters and power restoration support.
- Competitiveness
- Utilization of experienced regional network
- Customers
-
- Local governments
- Companies
- Local communities
- Products
-
- Emergency response during outages
- Power restoration support during disasters
- Information dissemination services
Energy-Related IT Services
- Overview
- Provides IT solutions in the energy sector.
- Competitiveness
- Utilization of in-group information technology
- Customers
-
- Power companies
- Corporate customers
- Local governments
- Products
-
- Energy management systems
- Smart meter services
- Data analysis tools
Environmental and Energy-Saving Consulting
- Overview
- Multifaceted consulting to reduce environmental impact.
- Competitiveness
- High-precision proposals based on long years of power business experience
- Customers
-
- Local governments
- Companies
- General households
- Products
-
- Energy-saving and environmental improvement advice
- Carbon neutral support
- Environmental education and awareness activities
Regional Revitalization and Community Support
- Overview
- Operates support programs in collaboration with local society.
- Competitiveness
- Deeply rooted local social contribution activities
- Customers
-
- Local governments
- Regional organizations
- Products
-
- Support for regional revitalization initiatives
- Disaster recovery support projects
- Sponsorship of education and cultural activities
Competitive Advantage
Strengths
- Overwhelming regional monopoly in Hokkaido
- Supply stability through diverse power generation methods
- Abundant transmission and distribution infrastructure development and maintenance capabilities
- Strong collaboration system with local communities
- Strict safety management under Ministry of Economy, Trade and Industry supervision
Competitive Advantages
- Well-balanced energy mix of thermal, nuclear, and renewables
- Stable customer base through regional closeness
- Power generation efficiency and environmental load reduction via latest technologies
- Rapid response during incidents due to robust transmission and distribution network
- Focus on maintaining trust from the region given high public nature
Threats
- Business risks from suspension of nuclear power plant operations
- Intensifying competition due to power market liberalization
- Increasing natural disaster risks from climate change
- Cost instability from fuel price fluctuations
- Business environment uncertainty from regulations and legal amendments
Innovations
2023: Ishikari Bay New Port Power Station Combined Cycle Introduction Plan
- Overview
- Aims to improve power generation efficiency by introducing combined cycle power generation equipment.
- Impact
- Contributes to fuel cost reduction and lower environmental impact
2022: Renewable Energy Expansion Project
- Overview
- Advancing plans to increase wind and solar power generation facilities.
- Impact
- Improves renewable energy ratio and contributes to a decarbonized society
2021: Smart Meter Deployment Expansion
- Overview
- Achieves efficient billing through widespread remote meter reading systems.
- Impact
- Improves operational efficiency and customer services
2024: DX Promotion in Electricity Retail Business
- Overview
- Promoting advanced demand-supply forecasting and customer response using AI.
- Impact
- Achieves cost reduction and improved customer satisfaction
Sustainability
- Renewable energy introduction rate improvement plan
- Greenhouse gas emission reduction targets
- Promotion of local environmental protection programs
- Energy-saving and power conservation awareness activities
- Strengthening corporate governance and compliance