April 13, 2012
Japanese Communist Party Yoshii Hidekatsu on April 12 demanded that the government order Tokyo Electric Power Co. (TEPCO) to cancel the unilateral increase in electric rates by threatening its customers with cutting their electricity supply.
TEPCO has raised electricity rates for business operators by 17% on average and has stated that it could cut off the electric supply if they do not abide by the plan. It is also considering increasing the electricity rate for households.
Yoshii pointed out that the Electricity Business Act requires utilities to guarantee electric supplies to their customers in exchange for allowing them to maintain their “regional monopoly”. The government should forcefully inform TEPCO that it is illegal to unilaterally cut off electric supply, he stressed.
Resources and Energy Agency Director Takahara Ichiro said in response that based on the idea Yoshii presented, the government will instruct TEPCO to engage in thorough negotiations with customers regarding the increase.
Yoshii also criticized the so-called “comprehensive cost principle” which allows electric companies to include in electric charges all costs necessary for the generation of electricity as well as guaranteeing a certain rate of profit. He urged that this “black box” system must be rectified.
Consumer Affairs Minister Matsubara Jin responded to Yoshii by saying that the government will examine the issue to determine if TEPCO’s raise in electric charges is appropriate and if it has provided enough information to its customers.
TEPCO has raised electricity rates for business operators by 17% on average and has stated that it could cut off the electric supply if they do not abide by the plan. It is also considering increasing the electricity rate for households.
Yoshii pointed out that the Electricity Business Act requires utilities to guarantee electric supplies to their customers in exchange for allowing them to maintain their “regional monopoly”. The government should forcefully inform TEPCO that it is illegal to unilaterally cut off electric supply, he stressed.
Resources and Energy Agency Director Takahara Ichiro said in response that based on the idea Yoshii presented, the government will instruct TEPCO to engage in thorough negotiations with customers regarding the increase.
Yoshii also criticized the so-called “comprehensive cost principle” which allows electric companies to include in electric charges all costs necessary for the generation of electricity as well as guaranteeing a certain rate of profit. He urged that this “black box” system must be rectified.
Consumer Affairs Minister Matsubara Jin responded to Yoshii by saying that the government will examine the issue to determine if TEPCO’s raise in electric charges is appropriate and if it has provided enough information to its customers.
