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Strengthening Support for Cost Reduction in Electricity Bills

In a significant move to aid businesses in managing their electricity costs, Japan Electric Power Procurement Solutions (JEPS), led by President Yuto Takahashi, has announced a bolstered support program specifically targeting firms utilizing the final supply service. This new initiative aims at achieving a reduction of over 20% in electricity bills, addressing a pressing need for businesses caught in expensive energy contracts.

Understanding Last-Resort Supply Contracts

The last-resort supply service is essentially a safety net for businesses that have not signed contracts with retail electricity providers. While it guarantees a steady supply of electricity, it often comes with a higher price tag compared to standard contracts. This can become a substantial financial burden over time, leading many companies to seek alternatives.

According to the Ministry of Economy, Trade and Industry (METI), there are approximately 2,205 ongoing final supply contracts across the nation, equating to around 150,000 kW. The high costs associated with these contracts can prevent companies from being competitive in their respective fields.

Cost Comparison and Potential Savings

For instance, under the Tokyo Electric Power Company (TEPCO) 2025 pricing structure, the basic charge for final supply electricity A is set at 3,636 yen, with power charges around 19.87 yen. In comparison, JEPS offers tailored proposals that can drastically reduce these costs:

1. Proposal 1: Basic charge of 1,850 yen; power charge approximately 19 yen.
2. Proposal 2: Basic charge of 2,700 yen; power charge approximately 15 yen.

With a scenario of a company using 500 kW of contracted power and consuming 1,450,000 kWh annually, businesses could see savings around 11 million yen per year, translating to a 23% reduction in electricity costs. However, individual results may vary based on actual usage.

Barriers to Switching

Despite the clear potential for cost reduction, many companies remain tied to last-resort contracts due to several reasons:
1. Past Traumas: Experiences with new power companies going bankrupt or imposing significant price hikes create fear of switching.
2. Separation of Duties: Often, decision-makers and the accounts payable personnel are different, leading to a lack of awareness about high costs.
3. Information Scarcity: There is often insufficient information to make informed decisions regarding reliable contract options and appropriate plans.
4. Business Priorities: Companies prioritize other tasks, which leaves little time to review energy contracts.

JEPS's Approach to Solutions

To overcome these barriers, JEPS has implemented a structured approach:
1. Curating Reliable Suppliers: By assessing past sales data, financial strength, energy source composition, and price volatility, JEPS presents candidates that meet the reliability standards.
2. Offering Optimized Plans: The company provides multiple options for energy supply models, including fuel cost-adjusted, fixed-rate, market-linked, and hybrid plans.
3. Continuous Support Post-Switch: JEPS commits to providing monthly effectiveness reports and market forecasts for transparency and confidence in savings.
4. Handling Administrative Tasks: The company also assists with all necessary paperwork and contractual changes to streamline the process for clients.

Important Considerations

It is noteworthy that if a company has prior unpaid electricity bills, they might face challenges in changing contracts or receiving alternative pricing proposals. However, in most cases, substantial savings are achievable for many clients.

Free Consultation Service Available

JEPS encourages businesses uncertain about their current electricity contracts or interested in learning about the switch process to reach out for information.

Contact Information:

• - Phone: 03-5843-8696 (main office)
• - Email: [email protected]
• - Customers are encouraged to utilize email during busy phone hours.

Company Overview

• - Company name: Japan Electric Power Procurement Solutions Co., Ltd.
• - President: Yuto Takahashi
• - Location: New Bridge 3-9-10, Minato-ku, Tokyo, 2nd Floor
• - Business Started: April 2024
• - Capital: 9 million yen
• - Services Offered: Electricity procurement consulting, renewable energy procurement, forecast data for fuel adjustments, electricity budgeting assistance, and support for switching electricity companies.
• - Website: https://jepsolution.jp/