Tokyo Electric Power Company Holdings Inc. (TEPCO) said Monday that it has applied to the Japanese government to raise its regulated electricity rates for households by around 30 percent from June in response to surging energy prices and the yen’s weakening.
The rate hike application, following five other major power companies which have already filed for the Japanese government’s approval to raise prices by between 28 percent and 46 percent from April, reflects a deteriorating business performance due to soaring prices of fossil fuels such as liquefied natural gas (LNG) and thermal coal for power generation.
Japan’s industry ministry will examine details of TEPCO’s cost reduction measures and decide on the actual rate increase.
Tomoaki Kobayakawa, president of TEPCO, told a press conference that the company would have problems ensuring stable supplies of electricity if it leaves the situation as it is.
“We don’t want to place a burden on our customers, but we’ve made the tough decision,” he said.
The hike in the regulated rates would be the first for TEPCO since 2012 when it raised the rates in the aftermath of the 2011 Fukushima nuclear disaster.