Japan plans to revise its power pricing system next year to better reflect fluctuations in fuel costs while minimizing the impact on consumers, trade minister Toshihiro Nikai said Friday.
Representatives from power companies, consumer groups and experts will meet in mid-October to work out how to revise the current system. Under the old method, in place since 1996, power companies are able to adjust prices each quarter to pass on part of their fuel expenses.
"The rapid increases in fuel costs happening now were not taken into account when we designed the system, and it needs to be revised," Nikai said. He reiterated a call made Sept. 19 for power companies to moderate their demands for higher prices as they would "heavily impact consumers' lives and the economy."
Tokyo Electric Power Co. and other electricity suppliers are caught between their obligations to shareholders and demands that they ease the burden on consumers. They have failed to fully pass on rising fuel costs, hurting their share performance.
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