Japanese based electric utility company Kansai Electric Power company (KEPCO) has filed an application on November 26, 2012, to increase the electricity rates in the country. The request outlines the need to increase the rate of power for households as well as corporate users by April, 2013.
If the their application is approved, then this will be the first hike by Kansai Electric in 33 years. The application was filed by Makoto Yagi, the president of KEPCO, along with the Natural Resources and Energy Agency.
KEPCO is looking forward to a rate increase of 11.88% for household users, which would mean that it would cost 599 yen extra per month on average for a single household. For corporate users, a hike of 19.23% has been proposed as well.
Yagi cited that the company was forced to apply for a hike as all of their reactors except two are offline and they did not have any alternatives in hand. The president added that fuel costs have increased due to the utility’s switch to geothermal power and the company is also facing a shortage in operating revenue. Even Kyushu Electric is also looking forward to an application for a hike in rates. All utilities have been instructed by the Ministry of Economy, Trade and Industry to streamline their operations before applying for rate hikes.