The government held a ministerial meeting on price issues and approved the electricity rate increase that seven major electric power companies have applied to the government.
On average, each company will increase prices by more than 7% to more than 15%, and price increases are expected to be implemented from June usage.
Seven companies, Hokkaido Electric Power, Tohoku Electric Power Co., Tokyo Electric Power Company, Hokuriku Electric Power Co., Chugoku Electric Power Company, Shikoku Electric Power Company, and Okinawa Electric Power Co., applied to the government for a price increase due to soaring prices of natural gas and other products used for thermal power generation, citing a deterioration in their financial position.
Against this backdrop, the government held a ministerial meeting on price issues on November 16 and approved the draft assessment policies for price increases by seven companies.
The average price increase for each company was reduced from the initial application, and including the revision of grid charges,
Hokkaido Electric Power increased from 7.31% to 4.20%, Tohoku Electric Power from 1% to 32.21%,
TEPCO from 9.29% to 2.15%. Hokuriku
Electric Power will go from 3.43% to 4.39%, Chugoku
Electric Power from 7.29% to 5.26%, Shikoku
Electric Power from 1.26% to 8%, and
Okinawa Electric Power from 23.41% to 7.36%.
The Ministry of Economy, Trade and Industry (METI) explained that it recalculated fuel costs for the three months from November last year, when energy prices fell, to January this year, and also rigorously assessed the salary level of employees.
Based on this assessment policy, the seven electric power companies have decided to apply to the government for a price increase again, and if the Minister of Economy, Trade and Industry approves it, the price increase is expected to be implemented from June use.
Minister of Economy, Trade and Industry Nishimura: "We conducted an extremely rigorous assessment that was not bound by precedent"
In response to the approval of the price increases of the seven major electric power companies, METI Minister Nishimura said at a press conference after the Cabinet meeting, "Based on the latest fuel prices and other factors, we conducted an extremely rigorous assessment that is not bound by precedent, such as recalculating costs. We will strongly urge each company to carefully provide easy-to-understand explanations to users and promote thorough management efficiency, while also firmly following up."
Chief Cabinet Secretary Matsuno: "Strict assessment reduces price increase rate"
Chief Cabinet Secretary Matsuno said at a press conference after the Cabinet meeting, "Seven companies had applied for a price increase of about 7% to 3%, but strict assessments such as a recalculation of costs based on the most recent fuel price were carried out, and the rate of price increase was reduced.