Energy prices to hit record highs with end of government subsidy next month

Electricity rates for October usage will hit record highs at all 10 major Japanese utilities due to the end of a government subsidy, with energy prices remaining elevated amid turmoil in the Middle East.

The utilities announced Tuesday that standard household rates for October usage, billed in November, will rise by between ¥835 and ¥1,578 from the previous month.

The government subsidy of ¥3.50 per kilowatt-hour, which had lowered monthly bills by about ¥800 to ¥900, will end.

Because the billing period partly covers November, the rates also reflect a Nov. 1 increase in transmission charges, or fees for using power lines.

Okinawa Electric Power Co.’s rate will rise by the most, ¥1,578, to ¥10,752 a month, the highest among the 10 utilities.

Tokyo Electric Power Company’s rate will go up by ¥1,286 to ¥9,561 a month.

Four major city gas utilities also announced their October rates Tuesday, with standard rates rising by between ¥435 and ¥744 from the previous month.

The increases follow the end of a government subsidy of ¥14 per cubic meter, with Tokyo Gas Co.’s rate rising by ¥744 to a monthly rate of ¥6,488.