Tokyo Electric Power Co.'s hoped-for 10 percent price hike for households will probably not kick in on July 1 because a government panel scrutinizing the plan faces no deadline for reaching a judgement, an official in the Ministry of Economy, Trade and Industry said Wednesday.
"Tepco would have to officially notify the public of the price hike before July 1, which means the panel would have to approve the hike around June 20," said METI official Manabu Nabeshima. "The panel has raised various concerns. They are basically concerned that Tepco could do more to cut costs."
The price hike is part of a 10-year turnaround plan, approved by METI on May 9, for Tepco to achieve a net profit of ¥106.7 billion in fiscal 2013. The utility is projecting it will post a loss this fiscal year of ¥201.4 billion, its third straight year of red ink, to pay compensation related to the nuclear disaster at the Fukushima No. 1 plant and increases in the cost of thermal fuel.