Japan summer power prospects look brighter - panel

A government-backed panel said that summer power supply in nuclear-free Japan may be better than utilities' forecasts.

Japan could have a power surplus of 0.1 percent in August, a preliminary calculation by the panel showed, compared with a 0.4 percent shortage estimated by the utilities.

The panel's calculation took into account the possible effect of deals whereby utilities offer big businesses cheaper electricity in exchange for power usage restrictions when there are immediate shortage risks.

However, the Kansai region - including the country's second-biggest metropolitan area of Osaka - will still see a significant shortage.

The findings are based on all of Japan's nuclear reactors remaining offline.

It also included the impact from electricity conservation efforts and a slight, expected increase in power supply.

Utilities are struggling to secure stable power supplies as all 50 reactors are offline for the first time in 42 years in the wake of public safety concerns following last year's Fukushima nuclear crisis in the wake of a huge earthquake and tsunami.

Kansai Electric, the utility most reliant on nuclear energy in Japan, may have a power shortage of 14.9 percent in August according to the panel. The company had forecast a 16.3 percent deficit.

Forecasts were based on temperatures similar to those in the record hot summer of 2010.

The panel of nine was formed by the government in April to review the utilities' power forecasts for the summer, when demand peaks due to the nation's air conditioners being switched on to combat the hot weather.

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