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Japan to cut household electricity bills by 20% to fight inflation

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imagine the MASSIVE amount of paperwork by government office-workers everywhere in Japan, and at all levels..... rather than just give a handout direct to consumers.... and my bet is that the process for claiming subsidies will be labyrinthine and frustrating.... but I hope I'm wrong on that. in any case, this 'initiative' will make barely any diference to my overheads.

5 ( +16 / -11 )

Kishida san is attempting to be voted in again albeit his numbers are low. Good luck Sir! I hope your show brings in a lot of votes.

-16 ( +5 / -21 )

Fine, but can we please get the actual economy started? That starts with welcoming overseas workers and tourists to Japan at unprecedented levels.

-8 ( +3 / -11 )

I just don't get it. A few weeks ago, the Briish PM states that she is going to spend 45 billion pounds to help the British economy, and the world comes down on her like a ton of bricks. She fires the Chancellor of the Exchequer and then she resigns. Japan, whose debts are worse than any other country in the world, and yes I know they are mostly self owned, but regardless, today state they will spend $458,039,791,600.0 and nobody bats an eye. I am really afraid that this debt crisis is going to hit Japan a lot faster than anybody expects of hopes to see, and I fear it is going to be really bad!

9 ( +17 / -8 )

The existing subsidies for oil wholesales to lower retail gasoline and kerosene prices will be extended beyond December, the sources added, though they will be offered at a reduced amount from June.

The headline sounds wonderful until you get to the LDP stinger .

Just more corporate welfare to utilities that include guaranteed subsidies to them that COULD result in an estimated amount of savings for a representative household.

The savings for an average household, as usual, will probably be undetectable.

The returns for the company shareholders will be very detectable though.

7 ( +17 / -10 )

 promoting the domestic production of grain, fertilizers and livestock feed by extending support, the sources said.

On top of the already heavily subsidized products that are produced here now. Rice here in Japan has been subsidized for like forever, and prices for rice alone are stupidly higher than the rest of the world.

Seems to me like these rice farmers are already planting and harvesting the rice for damn near nothing, and charging the hell out of it to make a profit.

12 ( +19 / -7 )

Good news for everyone involved, after all these are the people funds and putting them to use in this manner is good for the People, the economy, and the government. A happy voter will keep your job as they say.

-11 ( +1 / -12 )

Kishida san is attempting to be voted in again albeit his numbers are low. Good luck Sir! I hope your show brings in a lot of votes.

Please! Before you and others make comments like this, understand the system HERE in Japan! Kishida doesnt have to worry about getting votes from anyone other than his district in Hiroshima!

Kishida only has to worry about a little over 330,000 people registered to vote in his district, in fact in his last election he got over 130,000 votes!

What he MUST worry about is the factions within the LDP and whether they will continue to support him, AND the public opinion polls, otherwise there is little he has to worry about in his position. He's been reelected in 9 different elections.

https://en.wikipedia.org/wiki/Hiroshima_1st_district

3 ( +10 / -7 )

The difference between the UK and Japan is that unlike the BOJ, BOE isn't printing endless amounts of zero interest money. But Japan hasn't found the infinite money hack, and chickens are coming home to roost. Japan could keep up the QE with little consequences when everyone else was doing it too. But QE during a contractionary period is going to devalue the yen to new records.

2 ( +6 / -4 )

"Cut", more like government subsidy. Don't worry though, they'll get it back by raising the consumption tax, which they are already discussing according to https://news.yahoo.co.jp/pickup/6442805

9 ( +10 / -1 )

How is the average electric bill in Tokyo,is it less 40 dollars

-10 ( +0 / -10 )

Quite something - 20%!

But continued reading says early next year to September next year.

Now that's a mere 7 months! And what after that?

Besides, I'm sure, they will find one way or another to get that money back again.

6 ( +6 / -0 )

More money for shareholders and energy sector bosses.

Cronyism is rife as usual.

11 ( +14 / -3 )

If they really wanted to help the people, they could use that money to subsidize solar panels on houses and apartment buildings. The excess energy not used could then be sold to Tepco. People's energy bills would plunge AND they could make some extra coin giving their extra energy to Tepco.

5 ( +10 / -5 )

Cut", more like government subsidy. Don't worry though, they'll get it back by raising the consumption tax, which they are already discussing according to https://news.yahoo.co.jp/pickup/6442805

The last raise in the consumption tax was supposedly to be used exclusively for child development needs and families with young children.

Since the increase, there has been little news on actually HOW the money has been used, and I will bet that it isnt going to where it is supposed to be!

8 ( +11 / -3 )

Good news, well done Japanese govt. Time to read the riot act to energy corporations and cap the prices they are permitted to charge to much lower levels. If they don't comply - nationalize them.

-7 ( +4 / -11 )

But they are already talking about raising consumption tax. I say it's just a performance.

3 ( +4 / -1 )

The Japanese overconsume electricity, gasoline compared to Europe.

The government should rather ask people to consume normally and so the bill goes down. (for example, not turning on the air conditioning or the TV all day, not taking baths every day, turning off the car engine in parking, etc.)

Japanese families consume too much! should start to make effort like Europe

-11 ( +2 / -13 )

Higher energy prices are threatening to squeeze household budgets and the government is seeking to reduce utility bills, covering not just electricity but also gas.

The state subsidy is not financed by free money.

Reactivate idled nuclear power plants.

-3 ( +3 / -6 )

@MarkX

 

I just don't get it. A few weeks ago, the Briish PM states that she is going to spend 45 billion pounds to help the British economy, and the world comes down on her like a ton of bricks. 

Because UK's inflation rate is 8.8% whereas Japan's is 2.8%, and global investors view Japan's economy as more deflationary than inflationary, as the inflation here is seen as cost-push and thus temporary. Also, Truss's plan included a tax cut for the wealthiest group while millions report skipping meals that they can't afford .

@antifun

Japan could keep up the QE with little consequences when everyone else was doing it too.

Well, Japan is doing it and shows no signs of tightening. The situation here isn't good but it's not as bad as many other places, like the UK and the EU.

QE during a contractionary period is going to devalue the yen to new records.

It also sends its competitors' currencies up to new records, which is worse in terms of recession risk, output and jobs.

-6 ( +1 / -7 )

There will be no form filling. The reductions will be automatic and the government will reimburse the power and gas companies.

The average electric bill over 12 months is about ¥8,000. 20% reduction per month ¥3,200. 9 months 28,000¥.

Should also include the water charges.

European power and gas prices are higher.

8 ( +8 / -0 )

This is good and bad. It's good to help folks who are struggling but doing it this way is going to help someone with the heating on high 24/7 for their pet iguana or with ten computers running nonstop making cryptocurrency.

Given where we are with climate change, pollution in general, and resilience in a country prone to natural disasters, the thing to do is to reduce power consumption, not to subsidize a dependency on it.

3 ( +4 / -1 )

 If they don't comply - nationalize them.

All energy companies in all countries should be nationalised

2 ( +8 / -6 )

The Japanese love taking hot baths every day. They use kerosene heaters often during the winter. They are big users of gas and kerosene so the costs need to be reduced to assist with living.

-4 ( +0 / -4 )

I guess I am completely unknowledgeable about this. But how exactly is this going to help me? Is the money going to the electric company so they can give me a discount? So does that means the electric company is getting richer? What about if I choose to reduce the amount of electricity I use? Sure a reduction in price will still benefit me, but to be honest, I'd prefer to get money and let me use as I see fit.

4 ( +4 / -0 )

Hopefully it only covers a certain bracket of kWh and not subsidise people who wastes electricity.

Would also be great if they incentivise more solar installations to lessen the loads on both ends.

4 ( +4 / -0 )

"Most funds would have to be secured by issuing government bonds."

https://www.bloomberg.com/news/articles/2022-10-11/trading-drought-worsens-in-japan-s-broken-bond-market

Create MORE debt that nobody wants to buy, create MORE Yen to buy the newly issued debt, subsidize the corporations AND consumers.

More Yen in the system, in the hands of consumers that are not producing goods/services to consume, creating even higher inflation. The same Japanese consumer that also has competition from tourists coming in with a stronger currency to create more demand for a dwindling supply of goods that are not being produced.

"Kishida has instructed officials to focus on steps to ease the pain of accelerating inflation and address yen weakness, spur wage growth and rejuvenate the economy."

By creating more inflation and further devaluing the Yen?!

...and this, barely scratches the surface.

1 ( +2 / -1 )

Where is this money coming from then? More printing?

I've almost finished watching this documentary on how monetary policy has just screwed everyone over and this doesn't look good: https://odysee.com/@TED:5/MoneyMasters:e

-1 ( +2 / -3 )

@Wobot - You see? The deeper you dig to try and find what you think is a conspiracy the more rubbish you will find. That 'video' was posted in March 2019 and had gained so much traction it has had 242 views! 'This Documentary' LOL. Pull the other one mate.

2 ( +2 / -0 )

Covid and then Putin's war in Ukraine changed the world for the worse.

1 ( +4 / -3 )

It is quite brilliant, get the aging population to invest in government bonds and then claw most of it back in inheritance tax.

0 ( +0 / -0 )

The cost of the package is 240,000¥ per breathing person …. And I can potentially save 45,000¥ over 9 months on my power bill .!. Corporate welfare at its finest .

4 ( +4 / -0 )

Useful for us who live in older rented accommodation. Not so fair on those who had/are able to use solar panels. But it is what it is.

2 ( +2 / -0 )

MarkXToday  07:22 am JST

I just don't get it. A few weeks ago, the Briish PM states that she is going to spend 45 billion pounds to help the British economy, and the world comes down on her like a ton of bricks. She fires the Chancellor of the Exchequer and then she resigns. Japan, whose debts are worse than any other country in the world, and yes I know they are mostly self owned, but regardless, today state they will spend $458,039,791,600.0 and nobody bats an eye. I am really afraid that this debt crisis is going to hit Japan a lot faster than anybody expects of hopes to see, and I fear it is going to be really bad!

You forgot to mention tax cuts for the wealthy. During times when some have to cut meals to make ends meet, she proposes giving tax breaks to the wealthiest??!! Right now, the UK gov't needs as much as tax revenue as possible.

2 ( +5 / -3 )

Looks like the usual suspects are here to crap on a bit of good news in a never ending bad news cycle. As a father of 5, all of whom leave the lights, AC and whatever else they can ignore on...I'll take whatever cuts Tepco can make...or no cuts at all...just spare me an increase. Cheers!

-3 ( +1 / -4 )

Yubaru wrote: "Seems to me like these rice farmers are already planting and harvesting the rice for damn near nothing, and charging the hell out of it to make a profit." My father in law is a rice farmer. He works insanely hard for what little profit he makes. He's 84 and still has to work to pay off his heavy equipment loan. I hope you say "gochiso sama" and mean it next time you enjoy a nice warm bowl of Japanese rice. Cheers!

0 ( +3 / -3 )

there is better solution as Japan have to stand of won interests first and not act in name of US interests.

-5 ( +1 / -6 )

More insanity. Whether the government pays the bills or the poor hapless consumer, the price remains the same and so the CPI remains the same. And so this does nothing to curb price rises. Just creates the illusion of cheaper energy. and increases the already ridiculously large budget deficit.

These people are truly either mad or evil.

4 ( +4 / -0 )

There are 56 million private households. The subsidies will be paid for domestic users but also for business and industrial users.

Electricity is 30% domestic. 70% industrial/business. 1000TWh/year.

Subsidies for domestic ¥15 trillion. Subsidies for business/industry ¥18 trillion. Total ¥33 trillion.

1 ( +1 / -0 )

Nice. I’ll pump up the electricity usage at my home because it will be cheaper anyway.

-6 ( +0 / -6 )

If they want to fight inflation, they should cease their policies of seeking inflation.

Dead obvious.

-1 ( +0 / -1 )

she proposes giving tax breaks to the wealthiest??!!

The proposal would have eliminated the top tax bracket, going back to the same top rate of the Thatcher days. At 40%, it would still be ridiculously high - but the point is that it would marginally increase the incentive for more people to earn more money through more economic activity.

If you only get to keep 55% of that extra money you would earn, just barely over half the extra money earned… why bother to make effort to earn extra.

The change would mean you get to keep 60%, which would be an improvement, although still rather punitive.

Right now, the UK gov't needs as much as tax revenue as possible.

Effectively penalizing economic activity with higher tax rates is not a great way of doing that as they head into recession.

-1 ( +0 / -1 )

> Fighto me to read the riot act to energy corporations and cap the prices they are permitted to charge to much lower levels. If they don't comply - nationalize them

Has not worked very well in Venzuala, Cuba , Zibmabwe to name a few.

2 ( +2 / -0 )

I will welcome whatever discount they're offering. We try as a family to do our share of consuming electricity but...Japanese houses aren't well insulated so cold weather does drive up the electricity bill (and gas bill).

1 ( +1 / -0 )

I bought a power meter plug recently, just out of interest to see how much electricity various devices used.

One thing that caught me by surprise, was the bicycle battery charger... even though the battery was fully charged, the whole thing was like leaving a light on all day .. 60 Watts. So I've since switched the thing off.

It's a small change, but, when you start looking into waste, it becomes an eye-opener, and maybe for the long term good,

If you use gang-plank plugs, make sure you buy ones with individual on-off switches for each socket - that, really helps too. And, assuming we will all face power cuts in the future, purchase power-surge/lightning plugs to avoid damage to attached equipment.... though I really don't know if that helps, since we've never had a power outage/surge/brownout.

1 ( +1 / -0 )

This action by the govt directly helps the people rather than give them cash that will make the inflation worse.

-2 ( +0 / -2 )

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