About unpaid case of electricity sale fee

Incineration plants use steam generated from waste incineration to generate electricity. The generated power is consumed in factories and supplied to facilities that use residual heat, and the remaining power is sold to electric utilities to generate income.
In fiscal 2015, the Asahi Plant and Kanazawa Plants were sold to the Japan Logistics Cooperative Association, but the contract was canceled on January 21, 2016 due to the unpaid power sales fee. The Japan Logistics Cooperative, with a huge debt and went bankrupt on April 15, 2016. Following the bankruptcy proceedings, the Tokyo District Court completed the bankruptcy proceedings on October 5, 2018, with creditors, including the determination of dividends and transfers.

Resources and Waste Recycling Bureau established a project within the Bureau in FY2016, and with the advice of experts such as certified public accountants and lawyers, we reviewed our efforts so far and focused on issues related to the occurrence of unpaid cases and issues to be addressed. Based on the results of this verification, we introduced a contract deposit as collateral in the event of unpaid payments, and reviewed the contract details, such as shortening deadlines. In addition, regular revenue meetings are held to raise staff awareness of revenue and increase risk management by holding regular revenues.
Going forward, we will continue to take this case seriously and work hard to take more appropriate measures so as not to repeat the same thing.