Kyushu Electric Power Co. became the latest utility to seek approval for higher household electricity rates as the power industry continues to struggle financially with most of the nation’s nuclear reactors shut down.
Kyushu Electric Power Co. became the latest utility to seek approval for higher household electricity rates as the power industry continues to struggle financially with most of the nation’s nuclear reactors shut down.
Kyushu Electric on Nov. 27 asked the industry ministry to approve an average 8.51-percent hike in rates for household users from April. The company also said it intends to raise the rates for corporate users by an average of 14.22 percent from April. Government approval is not required to increase the corporate rates.
If Kyushu Electric’s application is approved, it will be its first rate increase in 33 years since the one following the second oil crisis of the late 1970s.
Tokyo Electric Power Co. has already raised its electricity rates while Kansai Electric Power Co. filed an application with the Ministry of Economy, Trade and Industry on Nov. 26.
Shikoku Electric Power Co. and Tohoku Electric Power Co. have also decided to raise their rates. Shikoku Electric President Akira Chiba and Tohoku Electric President Makoto Kaiwa are expected to hold news conferences on Nov. 29 and Nov. 30, respectively, to announce their plans.
Business executives have argued that higher electricity rates will substantially erode their international competitiveness.
But the utilities, including Kyushu Electric, say they are stuck with huge expenses for fuel to run thermal power plants because they are unable to restart their nuclear reactors amid rising anti-nuclear sentiment in the country.
All reactors were shut down following the accident at the Fukushima No. 1 nuclear power plant last year. Only two of the 50 reactors in Japan have since been restarted, both at Kansai Electric’s Oi nuclear plant in Fukui Prefecture.
Kyushu Electric said it has streamlined its operation, but these efforts have failed to cover the fuel costs.