Japan's electricity rates surges with thermal power

Tepco raised household electricity rates by an average of 8.46 percent to help pay rising fuel costs from thermal power generation.

The utility utilized thermal power generation as all of its nuclear reactors remain idled due to the Fukushima No. 1 plant disaster.

About 28.7 million contracts with households, small businesses and stores in the Tokyo area are subject to the rate hike. For a standard household utilizing 290 kwh per month under a 30 ampere contract, the monthly power bill will rise by 347 yen, or 4.82 percent, from August to 7,548 yen.

It is the first time since the 1979-1980 oil crisis that Tepco has resorted to a major rate increase.

Higher fuel costs have become common among regional utilities across Japan, as all but one nuclear plant remain suspended due to safety concerns.

Other utilities also would have to undergo the government's screening process if they apply for household rate increases, which require the approval of the economy, trade and industry minister.

The Japan Research Institute said in a report Aug. 7 that electricity rate hikes would become "inevitable" across the country amid the prolonged suspension of nuclear reactors.

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