TEPCO seeks to raise household power prices by 30% from June
TOKYO: Tokyo Electric Power Company (TEPCO) has applied to the Japanese industry ministry to boost its power prices to households by nearly 30 per cent from June due to soaring fuel procurement costs, the company said on Monday (Jan 23).
The move follows five other Japanese electric utilities which have already applied to raise prices by between 28 per cent and 46 per cent from April as the industry is squeezed by high costs of imported fuel, exacerbated by the weak yen against the US dollar.
The ministry will examine details of the company's cost reduction measures and decide the actual price increase.
TEPCO also forecast it would fall into a net loss of 317 billion yen (US$2.4 billion) for the year to Mar 31, against a 5.64 billion yen profit a year earlier, due to the surging prices of fossil fuels such as liquefied natural gas (LNG) and thermal coal, as well as local wholesale electricity prices.
TEPCO has also decided to provide a 300 billion yen capital to its power retail unit TEPCO Energy Partner as its financial health has deteriorated due to higher fuel procurement cost, it said.
