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TOKYO, April 2 Asia Pulse - The nation's 10 electric power companies expect combined capital spending to drop 8 per cent on the year to 2.99 trillion yen (US$23.67 billion) in fiscal 2000, falling below 3 trillion yen for the first time in 16 years.
The figure is expected to slip to 2.9 trillion yen in fiscal 2001.
Sluggish demand and an increase in industry newcomers due to deregulation have forced the firms to accelerate their reduction of excess assets. Capital spending hit a record high of about 5 trillion yen in fiscal 1993.
In their business plans through fiscal 2010, they have indicated that they will postpone construction of a total of 14 power plants, or about 30 per cent of all scheduled projects, that would produce 4.88 million kilowatts of power. From now on, they plan to respond to fluctuating demand by conducting bids for wholesale electricity.
During fiscal 2000, they shrank assets by around 10 per cent compared with initial estimates by delaying power plant construction and rationalizing equipment procurement. Electricity sales are expected to grow at a record slow pace ...