TEPCO rate hike for households goes into effect

TOKYO —

Tokyo Electric Power (TEPCO) on Saturday implemented a hike household electricity bills by 8.47%.

In May, TEPCO had requested government permission to ramp up residential customer bills by 10.28% to help pay ballooning costs in the aftermath of the Fukushima nuclear disaster, but was told to rein in its rise. It then proposed a rate increase of 8.47% which was approved by Chief Cabinet Secretary Osamu Fujimura, Trade and Industry Minister Yukio Edano and Consumer Affairs Minister Jin Matsubara.

The 8.47% hike means that average households will pay about 360 yen more per month.

TEPCO has been ordered by the government to implement further cost-cutting measures, including a 30% reduction in annual salary for managers which will save the utility an estimated 9 billion yen per year. It will also make the bidding procedures for equipment procurement more competitive.

The government has already earmarked 1 trillion yen in public funds to shore up TEPCO’s financial base.

Japan Today/AFP

  • 4

    tmarie

    Has any former manager, CEO or person in a power of position ever given back any of the money they clearly should give back? How their former president was allowed to get a huge bonus when he left is beyond me. Robbing the public to pay for their mistakes.

  • 2

    Scott Donald

    @tmarie, agreed. It's seems they are taking the U.S. Banking crisis option.

  • 2

    smithinjapan

    That's what you get when you rely on companies as corrupt as TEPCO; you pay them, then you pay them again for screwing you over.

  • 2

    zichi

    While the other 9 nine power companies have applied to reduce their monthly charge from this month,worth ¥50-¥150 for the average customer.

  • 3

    FightingViking

    While the other 9 nine power companies have applied to reduce their monthly charge from this month

    Lucky are those who do not depend on TEPCO...

    Zichi-san : does that include KEPCO ? (I'm beginning to regret having left Kobe...)

  • 8

    hereforever

    I believe they put this story in the wrong section. It should be in the Crime section, not National.

  • 2

    YongYang

    @Hereforever: Absolutely any rational persons sentiment would be exactly that. It is an affront to every user of electricity on the monopoly greed grid of TEPCO. That they overcharged for over a decade and now squeeze for more. A truly odious organization the should be OURS not THEIRS. I've gone solar for as much as possible and have got others doing the same. Giving them as little blood as possible!

  • 1

    zichi

    FightingViking yes!

  • 9

    Rick Kisa

    Any good profitable company should have contigency funds to cater for unforeseeable circumstances. TEPCO has been in existence for more than 60 years and got abnormal profits from nuke electricity for 40 years. It is a shame that it again seeks to exploit the already milked customers to pay its debts. If TEPCO is insolvent and cannot pay its debts, it should be closed.

  • 2

    mitoguitarman

    The Evil Power Co.

  • -4

    Elbuda Mexicano

    Tepco stands for Truly Engroped Pathetic Company, meaning they have us by the huevos! We have no choice in Tokyo now so if we want electricity must pay these rich greedy bastards at Tepco!

  • 0

    bajhista65

    Hahahaha.... the usual move from their greedy think tankers. Now they will not only be richer but have money coming from the people to compensate the victims of their mistakes and carelessness in managing their Nuke powered plants. Baka ne.

  • -5

    basroil

    http://www.japantimes.co.jp/text/nb20120824a1.html

    KEPCO among others is weighing a 30-40% increase. This TEPCO hike is just the tip of the very large iceberg.

    For the less than knowledgeable people, the major companies can only seek rate hikes based on their operating expenses, which amount to varying levels depending on the different generation methods. Nuclear used to provide 30% total energy and was about 50% cheaper than the oil/coal/gas mixture, so the operating costs increase by at least that much if nuclear isn't used.

    TEPCO lost nearly 30% of it's generation capacity, which results in 50% or more of the total energy production. Without this 8% increase it would be bankrupt by the end of the year simply on the doubling fuel costs. From 2009 to 2012 they saw a three fold increase in fuel prices and a 0% increase in their customer's bills, which makes no business sense at all. While they had been covering the increased cost by using nuclear to offset "green" energy and fossil fuel costs, they no longer have that ability and people will need to pay their fair share.

    People must remember that there is a huge financial price for not going nuclear, which if GDP effects are included, will be something like 100 trillion yen by 2030 according to the Finance Ministry. Sure people have options, but they better research just how much harm each of them will do, especially to their wallet.

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