Facing criticism over its planned price hikes, Tokyo Electric Power Co. will offer consumers a "peak shift plan," which charges more for power during afternoon hours but reduces the rates at night.
Facing criticism over its planned price hikes, Tokyo Electric Power Co. will offer consumers a "peak shift plan," which charges more for power during afternoon hours but reduces the rates at night.
The hour-differentiated rating system will be available in June for small-lot users, including households, shops and small factories, as an incentive to curb peak power use on hot summer afternoons. It will allow households that consume little power during the day, as well as small factories that can operate at night, to pay less for electricity, TEPCO officials said.
But the majority of households will likely not benefit from the new system because other hourly rates and the basic monthly charges will increase.
TEPCO announced the offer on May 11, the same day the utility submitted an official request to the industry ministry to increase electricity rates for small-lot customers by an average 10.28 percent starting in July. The utility, which will come under virtual state control, has been struggling financially since the accident started last year at its Fukushima No. 1 nuclear power plant.
A similar rating policy has been available for "all-electric homes," or homes that rely on electric power for all their energy. But all households will be eligible for the peak shift rating system.
TEPCO will distribute for free power meters that can measure power consumption by different hour brackets.
Under the hour-differentiated system, a standard household with a contract capacity of 30 amperes and monthly power use of 290 kilowatt-hours will be charged 53.29 yen ($0.67) per kilowatt-hour between 1 p.m. and 4 p.m. from July to September. That would be more than double the regular flat rate of 23 yen per kilowatt-hour if TEPCO’s planned hikes are endorsed.
The summer afternoon rate will be set at 45.15 yen per kilowatt-hour before the rate hikes are implemented.
From 11 p.m. to 7 a.m., when power demand falls below supply capacity throughout the year, subscribers of the peak shift plan will be charged 12.13 yen per kilowatt-hour, or about half the regular flat rate.
The night rate will be set at 9.72 yen before the rate hikes.
But during the remaining hours of the day, electricity will be priced at 29.66 yen per kilowatt-hour (27.08 yen per kilowatt-hour until the rate hikes), nearly 30 percent more than the regular flat rate.
The new rate plan also comes with a more expensive basic monthly charge of 1,260 yen, compared with 819 yen under the regular system.