Chugoku Electric Mulls Raising Household Electricity Rates

Tokyo, Sept. 13 (Jiji Press)--Chugoku Electric Power Co. <9504> said Tuesday that it will consider increasing its electricity rates, including those for households, amid soaring prices for liquefied natural gas and coal against a backdrop of Russia's invasion of Ukraine.

Among Japan's 10 major power utilities, Chugoku Electric was the first to declare a plan to consider raising regulatory rates for households. Other utilities may follow suit.

If Chugoku Electric decides to raise regulatory rates, it will be the first hike since 1980.

The current situation of surging costs is "far beyond the limits of what corporate efforts can deal with," Chugoku Electric President Natsuhiko Takimoto said at a press conference in the western city of Hiroshima.

A hike in regulatory power rates requires approval from the industry ministry. The screening process to assess the appropriateness of a price increase usually takes about four months after application.

[Copyright The Jiji Press, Ltd.]