The total amount of fines for the cartel is over 100 billion yen, the largest ever. On December 1, the Japan Fair Trade Commission (JFTC) imposed a surcharge on three companies, Chugoku Electric Power Co., Chubu Electric Power Co., and Kyushu Electric Power Co., for violating the Antimonopoly Act (unfair trade restrictions) for forming a cartel in the sale of electric power to businesses. I notified the disposition plan to order etc. Not only will the three companies pay too heavy a price, but management may face shareholder derivative lawsuits.
Chugoku Electric Power Co. received notice of the proposed disposal and revised its earnings forecast for the fiscal year ending March 2023 downward on December 2nd. The surcharge of 70.7 billion yen was recorded as an extraordinary loss, and the final deficit of 139 billion yen, which was originally forecast, expanded to 209.7 billion yen. The fine is the highest ever for Chugoku Electric alone. In addition, Chubu Electric Power Co. will post a surcharge of 27.555 billion yen as an extraordinary loss for the October-December 2010 financial year, and Kyushu Electric Power will be charged a 2.7 billion yen surcharge.
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