Enhancement of Income/Expenditure and Financial Base
4
HEPCO established the Management Foundation Enhancement Promotion Committee to respond to
intensifying competition and the need to improve profits, and to strengthen the financial base for
recovery of damaged capital.
By looking forward to the medium to long term as well as the present situation, and by strongly pushing
forward with revenue expansion measures and efficiency as well as cost reduction measures, we will
drastically improve income/expenditure and strengthen our financial standing.
■Repairs using “the improved technique of temper bead welding”
Example of cost-cutting initiatives: Application of on-site weld repair technology
As a thermal power station ages, cracks may
appear in facilities, requiring weld repairs to be
performed. In the case of large pieces of equipment,
such as turbine casing,*
1previously the equipment
needed to be taken to the manufacturer’s shop,
even if the welding area was only a small part on
the equipment. But now, in order to reduce costs
and shorten timeframes of maintenance outage,
HEPCO has developed and introduced “the
improved technique*
2of temper bead welding,”
which enables welding work to be performed
easily on-site. HEPCO has been working to
expand application of this welding technique.
1. Steel container that covers a turbine.
2. An improvement on the conventional temper bead technique, which adds heat treatment and other processes to improve fatigue strength of the repaired area.
Turbine casing
After welding
Main measures
Increase revenue by strengthening sales
Strengthen sales activities
Electricity sales in the Tokyo metropolitan area
Gas supply business
Organization review in retail sales division
Build an efficient and robust business management system
Reduction of materials and equipment procurement costs Review of construction matters and construction methods with the latest technology and
knowledge Improve
management efficiency, reduce costs
・Start offering new price menu, expand alliance partners of Web service points, further enhance new electricity price plan and services incorporating cooperation with companies from other industries, etc.
・Newly established the Metropolitan Area Sales Dept. and strength-ened sales structure [April 2017]
・Quickly start business activities to customers and develop businesses that cooperate with other companies
・Expanding consignment to Hokuden Service (our group company) for the purpose of improving both service and efficiency [April 2017] ・Streamlining of the operating institution (branch / sales office)
[scheduled for April 2018], etc.
・While looking closely at the legal unbundling in April 2020, the HEPCO group will unite and review work details and organization
・Utilization of external knowledge, efforts for a competitive order rate of 30%, review specifications of equipment and utilize general purpose goods, separate order of materials and construction, etc.