Breaking News

Australia Raises Almost US$5 Billion as Abbott Sells Medibank in IPO
Tweet TWEET

Japan to Make Power Utilities Limit Tariff Rises, Yomiuri Says

Tokyo Electric Power Co. (9501) and other Japanese utilities will have to limit increases in their tariffs by revising their method for calculating costs, the Yomiuri newspaper reported, citing unidentified officials.

The Japanese government is planning to make power companies reduce the labor cost reference they use to calculate charges by 20 percent, the Yomiuri said. Companies will be asked to cut costs by buying fuel supplies together, according to the report.

The changes will affect Tokyo Electric, which is planning to ask for government permission to raise household rates to help it pay for higher fuel costs after the disaster at its Fukushima nuclear station, the paper said.

Tokyo Electric overestimated costs used to calculate prices for its customers for as many as 10 years, a government committee investigating the utility’s finances said in September last year.

To contact the reporter on this story: Jacob Adelman in Tokyo at jadelman1@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.