As a means to cope with the rate-increase of Tokyo Electric (TEPCO), there is some movement to start shifting of the increased rate to the prices of industrial gases in the TEPCO’s service territory. All companies, however, do not announce to public about their revision of price, but just handle the matter on an individual basis as a thorough compliance is observed strictly among them.

As far as we have ascertained with information from distributors, Taiyo Nippon Sanso has started adjustments for implementation effective from June 1. Showa Denko Gas Products also started to discuss pricing on a full-fledged scale. Other industrial gas manufacturers are also reported to be discussing the matter internally. Regarding the price increase of liberalized electricity which TEPCO already implemented from April 1, it seems that each manufacturer of industrial gas has been negotiating tenaciously according to the policy of JIMGA. However, TEPCO has not allowed any reduction of the raised gap of rate and rejected payment of any different amount from its billing. Under the contractual terms, furthermore, TEPCO can cut off power supply unilaterally in case of non-paying for more than 50 days from the next day of meter-reading.

All the industrial gas companies, who had thought of an increase figured out by IMGA at an earlier stage, seem to have started payments as billed by TEPCO while sending a certification of contents to the effect that it is just a temporary payment under JIMGA’s new policy released on April 23. Those companies who decided to implement shifting to prices seem to have included the increased portion of the conventional fuel cost adjustments as well as the TEPCO’s spring rate-increase into the factors to increase their prices. According to Taiyo Nippon Sanso, the increase ratios they requested to customers are 15% for air-separation gases and 20% for general packaged gases.

In this connection, it is our estimation that cost increases in total will amount to about 200 million yen for a plant of 10 thousand m3/h class, taking TEPCO’s spring rate-increase into account.