Japan Power Companies Seek Up To 40% In Rate Hikes

Most major utilities have sought to raise their electricity rates by around 30 percent to over 40 percent for the next fiscal year, in a move that will likely add to the burden on household expenses, Mainichi Shimbun reported.

Photo Insert: Hokkaido Electric Power Co. said Thursday that it has requested an average hike of 32.17 percent in June.

Seven of the 10 largest electricity companies have applied to the industry ministry to raise regulated electricity rates for households, which requires government approval. 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.

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.

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

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 ($22).

Hokuriku Electric Power Co. in November last year requested the highest rate of increase at 45.84 percent, while Shikoku Electric Power Co. asked for the lowest at 28.08 percent.

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