TEPCO has lowered the rate increase in electricity rates that it had applied to the government from the initial average of 29.3% to 17.6% in light of the recent decline in energy prices.
Seven of the 10 major electric power companies, including TEPCO, have applied to the government for a price increase of more than 7% to 28% regarding the "regulated fee" for households, but the Ministry of Economy, Trade and Industry (METI) has instructed them to review the calculation of fuel costs and apply again, saying that the burden on each company has been reduced due to the decline in energy prices.
Against this backdrop, TEPCO revealed that it had lowered the rate increase in regulatory rates from the initial average of 45.29% to 3.17%, taking into account trends in fuel costs as well as purchase prices for electricity procured from the market.
The main reason is that fuel costs for the last three months from November last year to January have fallen from the three months from August to October last year, which was the basis for the original application.
If the application is approved, the monthly electricity bill for an average household with a monthly electricity usage of 6 kilowatt-hours will be increased from the current 11,1 yen to 3,8 yen, but the 10,3 yen increase will be reduced from the initial amount.
TEPCO submitted these details to the Ministry of Economy, Trade and Industry on March 1, and the government will review them again in the future.
TEPCO President: "We want to reduce the burden on customers"
At a press conference on March 30, TEPCO Energy Partner President Nobuhide Akimoto stated, "Although we have lowered the rate of price increases, the situation that places a burden on customers remains unchanged, and we would like to promote initiatives that will lead to thorough rationalization of management and reduction of the burden on customers."