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HOME  > Past issues  > 2012 November 28 - December 4  > Kyuden applies for permission to raise power rates
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2012 November 28 - December 4 [NUCLEAR CRISIS]

Kyuden applies for permission to raise power rates

November 27, 28 & December 1, 2012
Kyushu Electric Power Company (Kyuden) on November 27 applied to the central government for permission to increase power rates because fuel costs for thermal power generation have been escalating.

If the application is approved, electricity rates for ordinary households will rise by 5.7% on average, or 378 yen a month from April 2013.

The estimate for electricity charges is based on the assumption that Kyuden will restart the operations of the idled Genkai Nuclear Power Plant (Saga Prefecture) and the Sendai NPP (Kagoshima Prefecture) one after another from July 2013. Kyuden President Uriu Michiaki told reporters that the company may consider further price hikes in case those NPPs are not reactivated on schedule.

A man, who has been sitting-in in front of Kyuden’s head office in Fukuoka City to protest the plan to resume the operations of NPPs, said, “The utility argues that without restarting its nuclear reactors, it will go into the red and become unable to supply power. What the company is claiming is the same as the past threat that people would suffer power shortages in summer because nuclear plants’ operations remained offline.”

Yanagi Akio, secretary general of the Fukuoka Prefectural Federation of Traders and Producers Organizations, criticized the power company for failing to reform the rate assessment system in which the nuclear power promotion cost such as huge donations and entertainment expenses is all added to electricity prices.

The Japanese Communist Party Kyushu Region Office requested Kyuden on November 5 to cancel the planned price hike. Company officials replied, “We have been able to prevent power rates from soaring by increasing the dependence on nuclear power,” while admitting that the salaries of the utility’s 18 senior executives amount to as much as 570 million yen.

JCP candidate for the Lower House election Tamura Takaaki said, “Kyuden has neglected to make efforts for cost-saving and continued to buy fuels from abroad at higher prices than paid by other countries. It’s all nonsense to force the extra costs onto the public.”

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Kansai Electric Power Company on November 26 requested permission from the government to raise electricity charges for households by 11.88% on average because of an increase in fuel prices for thermal power generation.

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Tohoku Electric Power Co., Inc. on November 30 announced that it will increase electricity rates sometime in early 2013.

The utility explained that the planned increase is due to faltering business conditions following an increase in the fuel cost for thermal power generation as a replacement for nuclear power and the cost of repairing thermal power facilities damaged by the Great East Japan Disaster.


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