22 December 2016

Tokyo Gas Applies for Authorization of revised "Transmission Service Agreement"

Tokyo Gas Co., Ltd.

Tokyo Gas Co., Ltd. (Head office: Minato-ku, Tokyo; President: Mr. Michiaki Hirose, "Tokyo Gas") has submitted an application to the Minister of Economy, Trade and Industry for authorization of "Transmission Service Agreement" prescribed in Article 48 Paragraph 1 of the Gas Business Act (5th revision), pursuant to Article 18 Paragraph 1 of this Act*1 .(released on 29th July 2016)

Today, Tokyo Gas reapplies for authorization of revised "Transmission Service Agreement" (hereinafter referred to as "Agreement") reflecting the instructions of revision based on the policy of assessment by Minister of Economy, Trade and Industry on 7th December 2016.

The "Agreement" is provisions which prescribe the tariffs and other supply conditions in cases where businesses newly participating in gas sales and other gas retailers aside from Tokyo Gas use the gas pipelines and facilities of Tokyo Gas. The present transmission service agreement has been revised to reflect the revisions of various laws toward the full liberalization of the gas retail market to be implemented on April 2017 as well as the contents of deliberations at national councils*2.

The average of transmission service tariff is 20.64 yen (Tokyo district etc.) on the "Agreement". The optional agreements provided in the application on 29th July are not set in this reapplication.

The "Agreement" is to be applied on April 1st, 2017 after authorization of the Minister of Economy, Trade and Industry.

*1 upplementary Provisions of the Act on Partial Revision to the Electricity Business Act, Etc. (enacted on June 24, 2015).

*2 National councils include the Gas System Reform Subcommittee of the Strategic Policy Committee of the Advisory Committee for Natural Resources and Energy.

Appendix

■Tariff table

1.Standard transmission service tariff(Type1)[tax-exclusive]

Tokyo District etc.

(45MJ)

Gunma District etc.

(45MJ)

Yotsukaidou12A District

(38.51166MJ)

Type1

Tokyo District etc.:0m3~20m

Gunma District etc.:0m3~24m Yotsukaidou12A District:0m3~20m

Fixed tariff

Standing

/contract

/month

345.00

345.00

345.00

Unit tariff

/m

47.88

82.56

73.08

Tokyo District etc.:20m~80m

Gunma District etc.:24m3~500m Yotsukaidou12A District:20m3~200m

Fixed tariff

Standing

/contract

/month

395.00

906.10

660.20

Unit tariff

/m

45.38

59.18

57.32

Tokyo District etc.:80m3~200m

Gunma District etc.:500m3~ Yotsukaidou12A District:200m3~

Fixed tariff

Standing

/contract

/month

801.40

5,861.10

2,638.20

Unit tariff

/m

40.30

49.27

47.43

Tokyo District etc.:200m3~500m

Fixed tariff

Standing

/contract

/month

1,459.40

Unit tariff

/m

37.01

Tokyo District etc.:500m3~800m

Fixed tariff

Standing

/contract

/month

2,329.40

Unit tariff

/m

35.27

Tokyo District etc.:800m

Fixed tariff

Standing

/contract

/month

6,953.40

Unit tariff

/m

29.49

2.Standard transmission service tariff(Type2)[tax-exclusive]

Tokyo District etc.

(45MJ)

Gunma District etc.

(45MJ)

Yotsukaidou12A District

(38.51166MJ)

Type2

No.3

Fixed tariff

Standing

/contract

/month

43,070.00

46,100.00

24,170.00

Flow rate

/m/month

675.00

719.74

159.00

Unit tariff

Winter

/m

4.12

22.82

5.83

Other seasons

/m

3.35

18.84

4.83

No.2

Fixed tariff

Standing

/contract

/month

105,840.00

79,600.00

Flow rate

/m/month

675.00

719.74

Unit tariff

Winter

/m

2.44

21.98

Other seasons

/m

1.95

18.14

No.1

Fixed tariff

Standing

/contract

/month

227,570.00

141,600.00

Flow rate

/m/month

675.00

719.74

Unit tariff

Winter

/m

1.66

21.62

Other seasons

/m

1.30

17.84

Amount added for low pressure

Additional unit tariff

/m

1.97

2.99

Appendix 2

Outline of the cost of the "Transmission Service Agreement"

1. Preconditions for estimating the tariff for Transmission Service (Tokyo District etc. )

Period for the calculation

Gas volume(average)

Rate of fair return

FY2017~FY2019

13.9 BCM

2.18%

(注) ・The gas volume is estimated based on the Supply Plan.

・The ratio of fair return is calculated subject to the relevant law.

2.The costs taking into account at the estimation of the tariff

・As the estimation, we take into account the costs for required check, maintenance, repairs and replacements for the gas transmission facilities to secure stable and safe gas supply and the amortization expense for the construction for new pipelines.

・We also estimate the costs taking into account the reflection of Gas Market Reform including the required costs for the sales activities contributing to the installation of new pipelines for new customers and the operation to keep our gas supply stable.

・At the same time, we also take into account the impact of the assumed cost saving including the promotion to seek competing bids for the purchases of maximally. As the result, the amounts of the costs were estimated 287.7 billion yen as the costs in the supply area of "Tokyo district etc." (the average of 3 years (FY2017 to 2019)).

【Contents(Tokyo district etc.)】

(Unit:100 million yen)

Estimated cost (application)

reference

Network cost

subject to yardstick assessment

1,055

Total of Personnel expenses、General expenses(except for "cost related to facilities" and "taxes and dues")and General and administrative expenses

Cost related to facilities

Depreciation & amortization

907

Repair costs

318

Loss on retirement of property, plant and equipment

176

fair return

135

Taxes and dues

323

Other expenses・Allowable profit

-87

Cost for supply and demand adjustment

23

Total of cost for adjustment and transfer

Cost for market research and development

25

Total of cost for market research and market development

Settlement of costs among business operators

3

Total

2,877

Tokyo Gas Co. Ltd. published this content on 22 December 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 December 2016 06:03:07 UTC.

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