Japan: TEPCO to be ordered to trim electricity rate hike to 8.47%

Major news in <Kyodo News>: TEPCO to be ordered to trim electricity rate hike to 8.47%

The government decided Thursday to order Tokyo Electric Power Co. to trim its electricity rate hike for households to an average 8.47 percent from the earlier planned 10.28 percent, having determined the utility can further reduce salaries to limit the additional cost burden on consumers.

The electricity rate hike, to be implemented from Sept. 1, along with the planned injection of 1 trillion yen in public funds, is seen as essential for the utility known as TEPCO to overcome its financial plight stemming from last year’s Fukushima Daiichi nuclear power plant disaster.

Noting that TEPCO will be asked to reduce by about 83 billion yen the total costs it initially planned to pass on to customers, Economy, Trade and Industry Minister Yukio Edano said, “After confirming that TEPCO has revised its application (on the rate hike) as ordered, I will give permission.”

news@theasian.asia