Household electricity bills could get more than ¥1,000 cheaper starting in May, when the government plans to introduce a new pricing system, industry ministry officials said.
A panel of the Ministry of Economy, Trade and Industry proposed a plan Thursday to change the national power pricing system to reflect fuel price changes more quickly.
It usually takes four to six months for changes in fuel prices to be reflected in customers' bills, and power companies modify the charges every three months.
Under the new system, however, the average fuel price over the previous three to five months would be reflected in customers' bills each month, the officials said.
With crude oil prices plunging, the monthly charge for a standard household in Tokyo will likely drop to between ¥6,000 and ¥6,400 under the new system, compared with about ¥7,200 in the first quarter.