Publication date: March 21, 2026
TEPCO to Include Faster Fuel Cost Pass-Through in Corporate Tariffs From April
TEPCO will revise its tariff for corporate customers (super high-voltage and high-voltage) from April onward. Currently, the average fuel price from three to five months prior to the month of use is reflected in corporate electricity tariffs. However, TEPCO will introduce a new pricing mechanism for electricity from April, under which tariffs are calculated based on fuel prices for imports recorded at the end of the previous month (e.g., March import fuel prices will be reflected in April charges).
A Nikkei report ties TEPCO’s move closely to the escalating Middle East tension and surge in fuel prices; however, constraints in the Strait of Hormuz may not be the only driver behind the tariff revision. TEPCO’s long-standing power purchase agreement with JERA is set to expire in March 2026. Once the contract expires, TEPCO Energy Partner, the retail arm of TEPCO, may need to procure a larger share of electricity from markets (spot and wholesale), which is likely to have encouraged TEPCO to pass on procurement costs more quickly.
🔍 Shulman Commentary: TEPCO is likely to increase its tariffs, reflecting both disruptions to fuel supplies from the Middle East and the upcoming expiration of its long-standing bilateral contract with JERA. The expiry of the long lasting bilateral contract could see more volume traded in the market, which may alter market dynamics.
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