The third sector "new electric power" established in Kazuno City, Akita Prefecture, will be suspended on the 14th of next month because the procurement price of electric power has soared and it has become unprofitable.
The business will be suspended by the third sector "Kazuno Power," which was established with the investment of Kazuno City and others.
"Kazu no Power" started a business to procure electricity generated by a hydroelectric power plant in the city and supply it to public facilities such as city halls and elementary schools in April last year, and as of September last year, 53 facilities. Was supplying power to.
According to Kazuno City, the procurement price is to be linked to the price of the wholesale electricity market, which was 4 to 7 yen per kilowatt hour from April to November last year, but then turned to an increase. On January 12, the average daily price soared to 160 yen.
For this reason, the company decided that it would not be profitable to continue the business anymore, and decided to suspend the business on February 14.
Public facilities that used to supply electricity will now be supplied by the Tohoku Electric Power Network.
Yoshihiro Taguchi, general manager of the Kazuno City Industrial Department, said, "I am very sorry for the suspension of business. It was unexpected that the market price soared."
In addition, Kazu's power commented, "We have been aiming for local production for local consumption of electric power, so it is a pity that the result did not meet expectations."