Ten electric power companies in Japan have announced a price increase in household electricity prices from March, including Tokyo Electric Power Company (TEPCO), Chubu Electric Power Co and Kansai Electric Power Co (KEPCO).
The electricity bill for an average household will increase by 283 yen per month for TEPCO, 292 yen for Chubu Electric Power Co and 55 yen for KEPCO.
The continuous price surge is due to the rise in imported fuels, including liquefied natural gas (LNG) used in thermal power plants, Sankei Shimbun reported. Additionally, electricity fees are based upon the fuel cost adjustment system, which automatically reflects the fluctuation of fuel import prices.
Under Japan’s fuel cost adjustment system, the higher costs imparted to consumers can only be 1.5 times the standard price set in advance by the respective power companies. In March, the price revision for KEPCO and Chugoku Electric Power Co will have reached its upper limit.
By adding Hokuriku Electric Power Co to the mix, the three companies will hit their upper limit in February, requiring them to apply to the Ministry of Economy, Trade and Industry to increase household electricity rates.
Moreover, four major city gas companies, including Tokyo Gas Co, will raise their utility fees from 168 to 229 yen per month from March.© Japan Today