Hope Enegey

Hope Enegey (株式会社ホープエナジー, HOPE ENERGY,INC.) was a Japanese retail electricity supplier that operated as a specified-scale electricity provider (a so-called "new power" company) under the country's electricity liberalization framework. It was a former subsidiary of Hope, a company that had built know-how in business for local governments. Hope obtained retail electricity business authorization in March 2018 and began specified-scale electricity operations, supplying power to municipalities and public facilities across Japan. Although energy sales revenue grew year after year, the energy business continued to post deficit results. The surge in electricity trading prices on the Japan Electric Power Exchange between December 2020 and January 2021 worsened Hope's performance, and a penalty for the shortfall in power that the company had to make up (the insufficient imbalance charge) of 6.5 billion yen was billed for January 2021. As a result, Hope's energy business fell to a final deficit of approximately 6.924 billion yen for the fiscal year ending June 2021, and Hope itself fell into excess liabilities. Hope applied to the Ministry of Economy, Trade and Industry for special installment payment measures for the insufficient imbalance charge, and raised funds through third-party allotment of new shares, share options with exercise price revision clauses, and private placement bonds. The January 2021 insufficient imbalance charge was fully repaid in installments by December 2021. However, electricity trading prices surged again from October 2021, expanding losses and worsening cash flow. As Hope moved to a holding company structure effective December 1, 2021, it announced on August 11 of that year that it would transfer its energy business by absorption-type split to Hope Enegey, which had been established in October 2020. Hope Enegey took over the energy business from Hope by absorption-type split effective December 1, 2021. After Hope's transition to a holding company structure, cash shortages led to delays in loan repayments and newly incurred insufficient imbalance charges, exposing the deterioration of Hope's cash flow. On February 14, 2022, Deloitte Touche Tohmatsu LLC issued a disclaimer of opinion in its review of the second-quarter report for the fiscal year ending June 2022. On March 14, 2022, Hope Enegey sent a "Notice of Suspension of Power Supply from Our Company" to some customers, and explained to Tokyo Shoko Research that Chubu Electric Power Grid had said it "had no choice but to suspend power supply after receiving a notice of cancellation of the wheeling supply contract." However, on March 15, 2022, Chubu Electric Power Grid commented to Tokyo Shoko Research that "to be precise, the contract with Hope Enegey has not been cancelled. On March 11, we requested improvement of the current situation and notified them that cancellation was possible if no improvement was made," and "we are perplexed by the notice that is not based on the facts. We are currently receiving many inquiries at Chubu Electric Power Grid and are responding in turn," creating a discrepancy of views between Hope Enegey and Chubu Electric Power Grid. On March 22, 2022, Hope Enegey cancelled its wheeling supply contracts with all general transmission and distribution operators due to non-payment of wheeling charges, and Hope on the same day resolved to file for Hope Enegey's bankruptcy. Hope Enegey applied for bankruptcy to the Tokyo District Court on March 25 of the same year and received a decision to commence bankruptcy proceedings on the same date. Total liabilities were approximately 30 billion yen.

Hope Enegey (株式会社ホープエナジー, HOPE ENERGY,INC.) was a Japanese retail electricity supplier that operated as a specified-scale electricity provider (a "new power" company). It was a former subsidiary of Hope, a company that had built know-how in business for local governments. Hope obtained retail electricity business authorization in March 2018 and began specified-scale electricity operations, supplying power to municipalities and public facilities across Japan. Although energy sales revenue grew year after year, the energy business continued to post deficit results. The surge in electricity trading prices on the Japan Electric Power Exchange between December 2020 and January 2021 worsened Hope's performance, and a penalty for the shortfall in power that the company had to make up (the insufficient imbalance charge) of 6.5 billion yen was billed for January 2021. As a result, Hope's energy business fell to a final deficit of approximately 6.924 billion yen for the fiscal year ending June 2021, and Hope itself fell into excess liabilities. Hope applied to the Ministry of Economy, Trade and Industry for special installment payment measures for the insufficient imbalance charge, and raised funds through third-party allotment of new shares, share options with exercise price revision clauses, and private placement bonds. The January 2021 insufficient imbalance charge was fully repaid in installments by December 2021. However, electricity trading prices surged again from October 2021, expanding losses and worsening cash flow. As Hope moved to a holding company structure effective December 1, 2021, it announced on August 11 of that year that it would transfer its energy business by absorption-type split to Hope Enegey, which had been established in October 2020. Hope Enegey took over the energy business from Hope by absorption-type split effective December 1, 2021. After Hope's transition to a holding company structure, cash shortages led to delays in loan repayments and newly incurred insufficient imbalance charges, exposing the deterioration of Hope's cash flow. On February 14, 2022, Deloitte Touche Tohmatsu LLC issued a disclaimer of opinion in its review of the second-quarter report for the fiscal year ending June 2022. On March 14, 2022, Hope Enegey sent a "Notice of Suspension of Power Supply from Our Company" to some customers, and explained to Tokyo Shoko Research that Chubu Electric Power Grid had said it "had no choice but to suspend power supply after receiving a notice of cancellation of the wheeling supply contract." However, on March 15, 2022, Chubu Electric Power Grid commented to Tokyo Shoko Research that "to be precise, the contract with Hope Enegey has not been cancelled. On March 11, we requested improvement of the current situation and notified them that cancellation was possible if no improvement was made," and "we are perplexed by the notice that is not based on the facts. We are currently receiving many inquiries at Chubu Electric Power Grid and are responding in turn," creating a discrepancy of views between Hope Enegey and Chubu Electric Power Grid. On March 22, 2022, Hope Enegey cancelled its wheeling supply contracts with all general transmission and distribution operators due to non-payment of wheeling charges, and Hope on the same day resolved to file for Hope Enegey's bankruptcy. Hope Enegey applied for bankruptcy to the Tokyo District Court on March 25 of the same year and received a decision to commence bankruptcy proceedings on the same date. Total liabilities were approximately 30 billion yen.

• 2022

  Hope Enegey applies for bankruptcy to the Tokyo District Court on March 25 and receives a decision to commence bankruptcy proceedings the same day.

• 2021

  Hope Enegey takes over Hope's energy business by absorption-type split effective December 1.

• 2020

  Hope Enegey is established in October.

• 2018

  Hope obtains retail electricity business authorization and begins specified-scale electricity operations.

New-power retail electricity supplier targeting municipalities and public facilities

• Retail electricity supply

• Specified-scale electricity service

1. 1Hope Enegey - Wikidatawikidata.org
2. 2ホープエナジー - Wikipediaja.wikipedia.org