Several Japanese power utilities will miss out on rate hikes they hoped would start on April 1 after the government delayed the approval process of their requests, leaving them with potential revenue shortfalls amid higher energy prices.
Japan's government is taking time to approve the requests from utilities such as Tokyo Electric Power Co. (Tepco) to ease the historically high inflation burden on consumers. But pushing the increases back further squeezes the loss-making sector between higher global fuel prices and Tokyo's green goals.
Seven utilities — Tohoku Electric Power Co., Hokuriku Electric Power Co., Chugoku Electric Power, Okinawa Electric Power, Shikoku Electric Power, Hokkaido Electric Power Company and Tepco — have requested rate hikes ranging from 28% to 46% mainly from April and some from June.