Utilities to cut rates in October, but gas will go up

JIJI

Due to a decrease in the price of crude oil and coal used for thermal power generation, eight of the nation’s 10 major power suppliers plan to cut electricity rates for October.

October electricity bills sent to the average family in the service areas of Kansai Electric Power Co., Kyushu Electric Power Co. and Tohoku Electric Power Co. are expected to fall by several yen from the estimated September levels, sources said Monday.

The margin of drop will be more than ¥10 at Hokkaido Electric Power Co., Hokuriku Electric Power Co., Chugoku Electric Power Co. and Shikoku Electric Power Co., and more than ¥30 at Okinawa Electric Power Co.

Meanwhile, Tokyo Electric Power Co. and Chubu Electric Power Co., which rely mainly on liquefied natural gas as fuel for thermal power generation, are expected to keep their rates almost flat for October, because LNG prices have risen, the sources said.

The country’s four major gas suppliers, however, will raise their October rates because of the LNG price increases.