Non-payment of electricity sales fees

Incineration plants generate electricity using steam generated from waste incineration. 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, electricity from the Asahi and Kanazawa plants was sold to the Japan Logitech Cooperative, but the contract was canceled on January 21, 2016 due to unpaid electricity sales fees. The Japan Logitech Cooperative, with huge debts, went bankrupt on April 15, 2016. Following bankruptcy, the Tokyo District Court completed procedures such as determining the amount of dividends and transferring funds to creditors, and ended the bankruptcy proceedings on October 5, 2018.

In fiscal 2028, Resources and Waste Recycling Bureau established a project within the Bureau, and with the advice of specialists such as certified public accountants and lawyers, we looked back on our efforts so far and focused on issues related to post-payment. Based on the results of this verification, we introduced a contract deposit as collateral in the event of unpaid payments, and reviewed the contents of the contract, such as shortening the deadline. In addition, by holding regular revenue meetings, we raise staff awareness of revenue and raise risk management.
Going forward, we will continue to take this case seriously and work hard to respond more appropriately so as not to repeat the same thing.