Seven of the 10 largest electricity companies seek to raise regulated electricity rates for households, by around 30% to over 40% for the next fiscal year (26 Jan. 2023)

2 comments

1. Excerpt:

   >Most major utilities have sought to raise their electricity rates by around 30 percent to over 40 percent for the next fiscal year, in a move that will likely add to the burden on households expenses.

   >Seven of the 10 largest electricity companies have applied to the industry ministry to raise regulated electricity rates for households, which requires government approval.

   >Of the 10 companies, nine expect a net loss for the current fiscal year to March due to increases in the price of gas and coal needed for thermal power plants.

   >As a relief step, the government will start providing subsidies to power companies so they can lower household electricity bills for January through to the summer by about 20 percent.

   Kyodo, 26 Jan. 2023.

2. How is electric companies making a loss? In calculating the bill, there is the base money, the variable one depends on how much you use, and an adjustment one that changes monthly depends on oil price and exchange rate. The last part has been fluctuating widely, sometimes 3 times the month before.

   So the consumers have already borne the high oil price and fluctuating exchange rate. Or am I still missing something?