JUNICHI MIYAGAWA/ Staff Writer
April 28, 2022 at 17:26 JST
Tokyo Electric Power Co.'s headquarters (The Asahi Shimbun)
Electricity rates in June will jump about 10 to 20 percent from the previous year, Japan's 10 major utility companies announced on April 27.
The rates will be the highest in the past five comparable years, the companies said. Soaring fuel prices, including natural gas and coal, are putting pressure on them to raise rates.
Tokyo Electric Power Co. will hike its rate for a standard household by 1,652 yen ($12.65)--compared to a year ago.
Chubu Electric Power Co. will raise it by 1,628 yen.
Five companies cannot raise their prices as they have reached a price ceiling set under the fuel-cost adjustment system.
The system is designed to automatically adjust monthly electricity fees based on fluctuations in fuel prices. Hokuriku, Kansai, Chugoku, Shikoku and Okinawa electric power firms have hit the ceiling since December.
Tohoku Electric Power Co. will also reach the ceiling in June.
The system is designed to protect consumers, but it is difficult for power companies to continue to shoulder the burden of rising fuel costs.
The Ministry of Economy, Trade and Industry is considering a review of the system. Rates will go up if the cap is removed.
Electricity rates for corporate customers, which are determined through individual negotiations, are also likely to continue to rise.
In March, fuel prices soared due to Russia's invasion of Ukraine. Prices on the wholesale electricity market rose to about four times the previous year.
Electricity rates for corporate customers were originally set lower than those for households. Therefore, utilities could end up in the red if they continue to sell at the same rates.
New power companies that procure electricity from the market have taken the initiative to significantly raise prices.
Major electric power firms are also having the same problems, with eight companies--excluding Hokkaido Electric Power Co. and Okinawa Electric Power Co.--effectively suspending new contracts.
Electricity rates for June
Hokkaido Electric Power Co. 8,464 yen (↑1,035 yen)
★Tohoku Electric Power Co. 8,565 yen (↑1,382 yen)
Tokyo Electric Power Co. 8,565 yen (↑1,652 yen)
Chubu Electric Power Co. 8,256 yen (↑1,628 yen)
★Hokuriku Electric Power Co. 7,211 yen (↑607 yen)
★Kansai Electric Power Co. 7,497 yen (↑773 yen)
★Chugoku Electric Power Co. 8,029 yen (↑1,191 yen)
★Shikoku Electric Power Co. 7,915 yen (↑999 yen)
Kyushu Electric Power Co. 7,253 yen (↑797 yen)
★Okinawa Electric Power Co. 8,847 yen (↑1,543 yen)
★ Companies that have reached or will reach the price ceiling
( ) Increase compared to June 2021
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