Japanese power firms seek price hikes, adding to household burden

Usually government will pledge to do something, where are those pledge?

Last month they already increased the average bill by more than 10.000 yen and they want to increase again? And how can a 30+ percent increase only add 2800 yen to the average bill? My calculation is that the average bill will go up by another 12000 yen or so. So an average house will see around 50.000 monthly bills which will be a roughly 100 percent increase compared to last year. Think some people cannot do some simple math. Oh by the way, spot gas prices have declined by almost 70 percent so why do they try to fool us by saying that has is expensive. Bunch of thieves

30% ? Aso was right, cup noodles for everyone,, buy candles and Blankets in the third largest economy in the World.? Heating your house is a balancing act with buying food. Yep can afford children.

However, the requested price hikes could be more than the subsidies, dealing another blow to consumers

Weren't the subsidies rolled out quite a few months ago ?

As usual in socialism for rich corporations, the goal of subsidies to corporations is not assistance to the electorate but to maintain and increase shareholder profits on the backs of taxpayers in the face of economic variables.

While the working public is exposed to the full market forces with no public assistance.

the government will start providing subsidies to power companies

If anything, subsiste people not companies!

Of the 10 companies, nine expect a net loss for the current fiscal year

Oh, I do not believe that piece.

Inflation is said to be around 4%, but I see much higher increases everywhere, and now power companies are showing 30% inflation. Something isn't right.

Japan will soon become like the U.K...people unable to heat their homes and unable to pay the utility bills.

Sad state of affairs.

Don't the people own these companies now through all the subsidies and clean-ups they have paid for on their behalf?

That would be a massive increase many will struggle to pay.

Last year the price was about ¥27/kWh and then ¥32/kWh and with those increases ¥40/kWh.

Cricky

Today 07:20 am JST

30% ? Aso was right, cup noodles for everyone

But but but Ukraine. Remember that is why.

Plenty here said it was worth it.

The power companies always have long-term contracts for LNG and coal at fixed prices.

Blame it on Putin's war alright, the Q? is will the rates drop when energy prices drop???

I don't think so, Greed shall persist.

Coal and LNG prices have decreased.

Lot of silver-sans feeding at the trough. They need their cashflow for their golf trips!

Instead of raising rates, how about trimming the fat at some of these companies! I'm sure there's a ton of it.

Coal and LNG prices have decreased.

Well that is a bit true and a bit false.

Now if we use global price LNG is down but that would mean including Russian Gas.

But seeing we are all supposed to be boycotting Russian that leave the others and by that we mean the USA and Australia are still very high.

Example February 2022 USA was $10 for LNG by September it was $16.72 today on January 17th the price was at $14.75.

So year the price is down from the peak of $16.72 but still 40% higher than this time last year.

Now we see the USA news showing very different prices especially CNN but they are pointing to Domestic and not export.

Europe has been complaining the the USA is changing 4 times the domestic price.

https://ycharts.com/indicators/us_natural_gas_liquefied_exports_price#:~:text=US%20Liquefied%20Natural%20Gas%20Exports%20Price%20is%20at%20a%20current,43.49%25%20from%20one%20year%20ago.

All the power companies have tied in 3-5 year contracts at fixed prices.

Spot prices are down and they can purchase additional supplies.

Puppy love again.

The LDP will continue to distract from very dire problems like income inequality, an energy crisis caused by greed and the predatory price gouging of daily necessities.

Distractions take the form of continuing to debate having two last names or gay marriage. It’s despicable and most of the general public could care less about the sanctity of marriage or family values. We want to put food on the table and not need a loan for our next energy bill. This is outrageous and Kishida is a pitiful excuse of a world leader.

Lately Japan reminds me of my home country Puerto Rico. Over there they had utility hikes 7 different times in 2022 alone. Plus tolls hike, plus in sales tax, plus an additional municipality sales tax, plus more annual taxes. Plus, plus, plus.

Gas prices are now competitive with coal in Asia and Europe, and industrial units are back in the black.

In Asia, the week-on-week decline in LNG Prices to sub-$20/Mmbtu levels has now made spot LNG competitive in the power mix in countries that use Newcastle 6000 Kcal/Kg coal for power generation, whose price is still fluctuating about the $400/Tonne mark.

https://www.naturalgasworld.com/gas-prices-now-competitive-with-coal-time-for-a-correction-ggp-103249

Those households with four working adults will be able to cope with increases but those who have retired are less so.

This will kill off any chance of an economic recovery, and hurt all but the rich. The rise in electricity cost will lead to price rises in everything that uses or is made with electricity, as businesses seek to cover the second large increase.

These power utilities are full of greatly overpaid useless oyajis; window-seat administrators and others parachuted in from the same ministries that used to over see them, in return for 'past favourable consideration.'

Few would know anything about power generation or distribution.

J-Gov should step in and limit the rise, but no doubt the bureaucrats will pass it, and many will end up working for the same utilities in 3-5 years time. Amakudari - descending from heaven yet again.

As a relief step, the government will start providing subsidies to power companies so they can lower household electricity bills for January through to the summer by about 20 percent.

How about providing real relief to the people? These companies never have to worry as the government will bail them out and pass on the problem to the consumer so they never try to get more efficient in their operations. What's the point of lowering by twenty just to raise it by thirty-two percent in June? Are we supposed to think that we got some savings in the first half? What garbage.

Seems like the power companies that are getting the nuclear plants up and running again aren't having to pass the costs on to their customers.

Wait so they are going to raise prices again, and request subsidies for “lowering consumption “ by requesting houses use less in dead ass of summer?

what a freaking scam. Let these companies freaking fold and jgov replace them with their own faux company

The LNG prices are lower is false.

Lower than in September at $16 and now $14 yes but not lower than this time last year at $10.

So the claims of LNG prices are lower only counts if you start in September 2022 .

Japan has increased its purchase from Australia by 39% over previous contractual deals.

This means spot price at 40% higher than last year.

Weekly Trend of Natural Gas and LNG Prices

https://oilgas-info.jogmec.go.jp/nglng_en/index.html

Hokkaido Electric Power Co said Thursday that it has requested an average hike of 32.17 percent in June, which will increase the monthly bill for an average household by 2,838 yen.

Please note that this mythical "average household" does not exist and is being used by the power company to hide behind how much they are actually charging.

The increase in your bill will only be 2,838 yen if you live in a 2DK apartment in Sapporo with two exterior walls, heat with kerosene, and cook and heat your hot water with gas.

If you live in a house with four exterior walls, no neighbours above and below, cook with electricity (IH induction), heat water with an Eco Cute boiler, and use some electric heating too, an air con or storage heaters, your bill will go up way way more. Most new builds have an Eco Cute and IH hob. Instead of hiding behind this "average bill", the power company should tell us what the price per unit of electricity is after this 32.17% rise. Our bill went up thirty odd percent in Jan (actually December usage) for us using 20% less power. This happened because of a "fuel adjustment" fee and a "renewable energy" subsidy being applied to every kWh we used. The cost of these extras (12.5 + 6 yen) was more than what we used to pay per kWh for overnight power. We heat with electricity and do so because thats what the power company convinced us to do (and because air cons are efficient). The worrying thing is that the price will be going up 30% and the electric company will still add this "fuel adjustment" fee and "renewable energy" subsidy on the top.

As mentioned in a comment above, if electricity is expensive, Japan is screwed. You cannot have an internationally competitive economy with super expensive electricity. If "international factors" are raising the price, then the government should work toward removing those "international factors" as soon as possible. It should not making moves likely to ensure that they continue into 2024 and beyond.

Working out the real cost of electricity is easy. Total cost divided by the kWh used.

This month's bill is ¥14,000 for 400kWh. That is ¥35/kWh. The price in 2022 was ¥27/kWh.

The cost for the same month last year was ¥12,000.

A further 40% increase would make it ¥19,600 or ¥49/kWh.

Working out the real cost of electricity is easy.

Yes, but why should you have to "work it out"? It should be transparent and obvious. The companies have the right to change the price every month with a "renewable energy subsidy" and a "fuel surcharge". Most people will only know with hindsight how much they will have to pay. They have better things to do than keep looking up how much electricity is going to be in the weeks ahead.

Anyway, its a complete joke to say inflation is 4% when electricity is up 30%.

kohakuebisu

   Working out the real cost of electricity is easy.

> Yes, but why should you have to "work it out"? It should be transparent and obvious. The companies have the right to change the price every month with a "renewable energy subsidy" and a "fuel surcharge". Most people will only know with hindsight how much they will have to pay. They have better things to do than keep looking up how much electricity is going to be in the weeks ahead.

I am a former electrical engineer. The meter reading slip dropped into your postbox every month and trying to understand the tiny writing is complicated.

The basic electricity charge is/was about ¥17/kWh. Then the basic charge. Then for the Tohoku disaster, renewables, fuel charge.

So I don't bother anymore, just the total charge divided by kWh.

The current cost in

Japan is ¥35/kWh.

USA is 15.33 cents/kWh ¥19/kWh.

Germany is 40 cents/kWh ¥51/kWh.

UK is  31.8p/ kWh ¥50.88/kWh.

And in the same breathe they are asking couples to make babies.

Utter lunacy what the corporations are doing to this country.

electricity companies have applied to the industry ministry to raise regulated electricity rates for households, which requires government approval.

Are the costs of government regulating prices worth any benefits?

Of the 10 companies, nine expect a net loss for the current fiscal year to March due to increases in the price of gas and coal needed for thermal power plants.

So they have to pay market prices for their inputs, but need to get approval from government bureaucrats to set their own prices?

As a relief step, the government will start providing subsidies to power companies

Why not just let them set their own prices????

so they can lower household electricity bills for January through to the summer by about 20 percent.

Why not let households pay whatever the free market prices are????!

However, the requested price hikes could be more than the subsidies,

Yeah so why not let the companies just set the prices rather than go through this pointless exercise at tax payer expense?

dealing another blow to consumers, who have been hit by price increases for an increasing number of goods as a result of Russia's war in Ukraine.

Oh no you don’t!!! This is a Kyodo article isn’t it. I don’t even need to look.

The government and BOJ have ostensibly been seeking these price hikes for a decade - it is what they were after, and even with inflation at 4%, they continue to have the BOJ print money to finance all the government spending (including these stupid subsidies), which has crashed the value of the yen.

Some goods prices have gone up because of events in Ukraine, but what we have now is general price increases, inflation. Not just higher wheat prices.

This place is ridiculously centrally planned.

Japan needs free market policies and less government meddling in the economy - as soon as possible. The central planners should get real jobs.

So glad I de-electrified my range and water heater. Gas rules

In Japan, the kWh of gas is higher than electricity. Gas is better for water heating.

Isn’t Inflation at 4%?

Obviously not…

Its a global thing!! Last month my electrical bill was $275 this month $500 last month my gas bill was $210 this month $520. I was told because I am in a different tier and that the cost for utilities have doubles. I was like NO SHIAT!!! You bill me then send me a letter. The letter said if you can't make payment we have ways to help you conserve energy. I'm looking at my use and it is basically the same for winter and summer month. They can blame this on global warming they can blame this on the war. All they want is the money and you now read gas stoves is bad for your health, everything now days is bad for your health even getting BILLS!!! Bill paid can't argue with the guys who control the switch!!!

How do you reduce emissions without becoming unpopular?

Increase the cost of energy and blame it on someone else.

wallaceJan. 27  02:09 pm JST

I am a former electrical engineer. The meter reading slip dropped into your postbox every month and trying to understand the tiny writing is complicated.

Very interesting information.

But it doesn't take an electrical engineer, imagined or not, to read an electric bill.

But it doesn't take an electrical engineer, imagined or not, to read an electric bill.

The slip with the electric meter readings is very difficult to read and decipher and I doubt most people try and is intentional by the power companies.

After decades of working in the industry, yes, I have a keen interest.

The electric meter reading is in Japanese with tiny print and many foreigners can't read Japanese.