Electricity bills in Japan are poised to jump to the highest level in at least five years on the back of expensive fuel imports, further stoking consumer inflation fears.
Power providers around the world are grappling with sky-high fuel prices amid a global energy crunch, and are now being forced to pass those costs onto customers — or else go bust. Governments are starting to take action, providing relief for households and businesses stuck with the expensive bills.
Nine of Japan’s regional utilities will increase power rates in March to the highest level in data going back five years, NHK reported Friday.
One utility will keep rates unchanged as it has hit its upper limit for costs passed on to consumers, according to the NHK report.
An average household in Tokyo is set to pay about ¥8,244 for their electric bill in March, up nearly 30% from a year ago and the highest in data available through June 2016, according to Tokyo Electric Power Company Holdings Inc. The rates of Kansai Electric Power Co. and Chugoku Electric Power Co. will hit the upper limit. Chubu Electric Power Miraiz Co. will raise its price for a standard household by ¥292 to ¥7,949, the steepest increase among the nine firms.
A fuel adjustment system automatically sets electricity rates for each regional utility based on a three-month average of import prices for liquefied natural gas, crude oil and coal. It’s reflected in electricity prices for consumers two months later.
Four major city gas suppliers in the country — Tokyo Gas Co., Osaka Gas Co., Toho Gas Co. and Saibu Gas Co. — will raise their rates in March, increasing prices in unison for the seventh straight month.
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