TEPCO Files for 29% Electricity Rate Hike
11:23 JST, January 24, 2023
Tokyo(Jiji Press)—Tokyo Electric Power Company Holdings Inc. on Monday applied for government approval of a plan to raise its regulated electricity rates for households by 29.31% on average.
The company submitted the application to the industry ministry, aiming to start the new rates in June to improve its business performance, hurt by soaring fuel prices worsened by Russia’s invasion of Ukraine.
The monthly bill for a standard household using 260 kilowatt-hours is projected to increase by ¥2,611 from the current ¥9,126 to ¥11,737.
The hike in the regulated rates would be the first for TEPCO since 2012, when it raised the rates in the aftermath of the March 2011 triple disaster of an earthquake, tsunami and nuclear reactor meltdowns.
“We would have problems ensuring stable supplies (of electricity) if we leave the situation as it is,” President Tomoaki Kobayakawa told a press conference. “We don’t want to place a burden on our customers, but we’ve made the tough decision.”
Japan has two types of household electricity rates—regulated rates, which require government approval for a revision, and discretionary rates, which power companies are allowed to revise freely.
The ministry is screening applications for regulated household rate hikes of 28-45% on average in April that were submitted last November by Tohoku Electric Power Co. , Hokuriku Electric Power Co. , Chugoku Electric Power Co. , Shikoku Electric Power Co. and Okinawa Electric Power Co. .
Hokkaido Electric Power Co. also plans to apply for government approval shortly for raising household rates.
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