The total amount of fines for the cartel is over 100 billion yen, the highest 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 electricity to businesses, I notified the disposition plan to order etc. Not only will the three companies pay too high a price, but management could face lawsuits over shareholder derivatives.
Chugoku Electric Power Co. has received notification of the proposed divestiture and has revised downwards its earnings forecast for the fiscal year ending March 2023 on Dec. 2. The premium of 70.7 billion yen was recorded as an extraordinary loss, and the initially expected closing deficit of 139 billion yen widened to 209.7 billion yen. The fine is the highest ever for only Chugoku Electric. In addition, Chubu Electric Power Co. will record a surcharge of 27.555 billion yen as an extraordinary loss for the October-December 2010 financial year, and Kyushu Electric Power will pay a surcharge of 2.7 billion yen.
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