Oct. 17 (Bloomberg) -- Kansai Electric Power Co., Japan's second-biggest power utility, will scale back proposed increases in retail prices for the January-to-March period, acceding to a request from the trade ministry.

``We are now considering how to implement the changes, while keeping costs down and ensuring the stability of electricity supplies to our customers,'' President Shosuke Mori said at a committee meeting held by the trade ministry today. The gathering was the first of a series to discuss how to review the country's system for pricing electricity.

Japan's Trade Minister Toshihiro Nikai last month requested that Tokyo Electric Power Co., Japan's largest utility, and other regional power producers reconsider proposed increases in retail prices to reduce the burden on households. Kansai Electric has said it may increase charges by about 500 yen ($5) for an average household with four members.

Japanese utilities typically review their rates on a quarterly basis to reflect changes in prices of crude and liquefied natural gas.

Tokyo Electric's President Masataka Shimizu said the company will review its retail prices for the three-month period to meet Nikai's demand. The company said in July it may raise the average monthly household electricity bill in January by about 800 yen, or 12 percent, a month. Hokuriku Electric will revise its prices for the January to March period, it said in a statement to the Tokyo Stock Exchange today.

Oil prices have plunged to trade at about half the record $147.27 a barrel reached on July 11, giving room to power producers to consider scaling back their fuel price increases. Oil traded at $70.98 a barrel as of 12:12 p.m. in London.

To contact the reporter responsible for this story. Megumi Yamanaka in Tokyo at myamanaka@bloomberg.net.

Last Updated: October 17, 2008 07:18 EDT