Trade and industry minister Yukio Edano, consumer affairs minister Jin Matsubara and Chief Cabinet Secretary Osamu Fujimura on July 20 decided to let Tokyo Electric Power Co. raise its electricity rate for households by an average 8.47 percent from Sept. 1. On Wednesday, Mr. Edano eventually set the increase at an average 8.46 percent. This is down from Tepco's initial plan to raise the rate by an average 10.28 percent. Since the rate hike will apply to small-scale factories, supermarkets and convenience stores alike, its effect will be great.
Judging that Tepco is likely to achieve the goals of its special business plan, the government will soon give Tepco a capital injection of ¥1 trillion, acquire more than half its voting shares, and virtually nationalize the power utility.
Therefore, it is all the more important for the government to strictly watch whether Tepco is making serious efforts to reduce costs and whether all costs included in its business plan can be justified. Tepco should make its cost details transparent.