OSAKA -- Kansai Electric Power Co. said it will slash 3,000 jobs -- more than 10 percent of its workforce -- by the end of fiscal 2004.

The utility said Wednesday that it also plans to reduce equipment investment by over 15 percent from fiscal 2002.

The company said it is moving to strengthen its financial base and prepare for intensified competition due to the deregulation of the nation's power market.

Kansai Electric President Yosaku Fuji said savings from the restructuring will be used to finance cuts in electricity rates planned for the second half of this year.

Some 500 jobs will be cut through attrition, mainly in administration and electric power divisions, Kansai Electric said.

In addition, the nation's second-largest electric power supplier will expand benefits offered under its early retirement program.

Kansai Electric revised downward its annual equipment investment for fiscal 2002 to 2004 to an average of 380 billion yen -- down from an average 450 billion yen planned earlier for fiscal 2001 to 2005 -- bringing the spending within its annual depreciation expenses.

The Osaka-based utility said it will further scale back operations at its costly midsize thermal power plants, cutting power by an additional 1 million kw from the beginning of fiscal 2002 to 5 million kw. It implemented a 4 million kw power cut in 2001.

Meanwhile, Fuji said his company has set aside 30 billion yen to buy back up to 16 million ordinary shares, or 1.6 percent of all of its shares issued, for retirement.

The decision is aimed at passing greater benefits on to shareholders, he said.