Through a comprehensive bidding process Japan-based Tokyo Electric Power (Tepco) has shortlisted four companies to supply them with 1,450MW of thermal power.
Energy to be purchased from the selected entities is, however, much less than the amount originally sought.
Tepco had announced its intention to obtain up to 6,000MW of thermal energy in August 2014, which was intended to expand the firm’s supply sources and lower its procurement costs, reports Reuters.
By the end of March, the firm had received ten bids for just 4,530MW of energy, and five of these were selected, as the remaining tenders exceeded the upper price range set by the firm, according to an anonymous Tepco procurement official.
Coal-fired energy suppliers Electric Power Development (J-Power), Nippon Steel & Sumitomo Metal, Tonen General, and Hitachinaka Generation, which is a unit of Chubu Electric Power, are the four selected firms.
The company expects to hold another tender to secure more LNG power, but no information has been disclosed.
Reuters cited the Tepco official as saying that dipping liquefied natural gas (LNG) prices might have prompted other energy giants to avoid the bidding process.
The firm, which owned the Fukushima Daiichi nuclear plant, had already struggled with its finances after the meltdowns at the facility in March 2011.
Tepco, which paid out billions of dollars in compensation claims and clean-up costs, was saved from bankruptcy by the Japanese Government in 2012.
The nuclear accident also led to the closure of all other atomic power generating units in the country for security checks, which prompted the utilities to seek alternate power sources leading to the import coal and LNG in the country.