The government has announced that it will provide subsidies for electricity and gas charges again this winter. The program will run for 3 months from December 2026 through February 2027, with relief of approximately ¥7,000 for a standard household and total spending expected to reach approximately ¥500 billion.
This winter's subsidies will be ¥1.0/kWh for electricity in December and ¥4.5/kWh in February, and ¥4.0/cubic meter for city gas in December and ¥18.0/cubic meter in February. The program will start 1 month earlier than last winter and run for 3 months from December through February.
The subsidies will cover low-voltage residential electricity and city gas. The amount will be smaller in December, while support in January and February, when heating demand is high, will be set at the same levels as last winter. The treatment of March will be considered in light of future weather and price trends.
The impact on the Consumer Price Index (CPI) will be reflected based on the months in which the subsidized bills are paid. Accordingly, subsidies for December 2026 through February 2027 are expected to affect the CPI for January through March 2027. By month, the subsidies are estimated to reduce the CPI by 0.14 percentage points in January and approximately 0.63 percentage points in both February and March.
The subsidies have been criticized as becoming a regular summer and winter measure. If extended, they could weaken incentives to conserve energy and raise concerns about the fiscal burden. At the same time, they also provide rapid support in emergencies, making an appropriate exit strategy necessary.