10 major electricity companies and 4 major city-gas companies announced electricity and gas rates for October usage, with prices rising at all companies. Electricity rates increased by an average of ¥835 to ¥1,578, while gas rates rose by ¥435 to ¥744, both reaching new record highs.
The 10 major electricity companies and 4 major city-gas companies announced on the 29th their rates for October usage, billed in November. Rates rose across the board against a backdrop of soaring fuel costs due to worsening conditions in the Middle East and the end of government subsidies.
Electricity rates, mainly regulated rates requiring government approval, rose by ¥835 to ¥1,578 month on month at the 10 companies, with each reaching a new record high. Gas rates rose by ¥435 to ¥744 at the 4 companies, also reaching record highs.
The increases were affected by higher import prices for liquefied natural gas (LNG) due to worsening conditions in the Middle East and the end of government subsidies provided from July through September. Higher electricity supply costs were also cited as a factor. 9 companies, excluding Hokuriku Electric Power, passed higher wheeling charges through to electricity rates.
At a press conference after a Cabinet meeting, the Minister of Economy, Trade and Industry said the government would closely monitor future trends in and fluctuations of crude oil and energy prices and their impact on electricity and gas rates.