June 7, 2012
Tokyo Electric Power Co. (TEPCO) is encountering fierce opposition to its plan to increase electricity rates for households by an average of 10.28% in July.
As justification for the hike, TEPCO cites the increase in business costs such as for fuel to operate thermal power stations. What they fail to mention is that the reason why the utility has to depend on thermal generation instead of nuclear energy is because the nuclear accident happened at the Fukushima Daiichi nuclear power plant.
A chair of an association, which consists of the distributors, retailers, companies of these industries, and consumer organizations, said, “It is unacceptable that the utility can think that it can easily impose its own financial burdens onto the general public and businesses.”
Tokyo’s Katsushika Ward Assembly unanimously adopted a statement submitted by the Japanese Communist Party which calls on TEPCO to reconsider its power bill hike plan. The statement reads, “Amid the protracted economic stagnation, people are facing financial hardships. If TEPCO enforces higher power rates on family users, it will have a serious negative impact on people’s livelihoods.”
The Yokohama City Assembly in Kanagawa Prefecture, Tokyo’s neighboring prefecture, also unanimously adopted a statement demanding a halt in TEPCO’s power bill hike plan. The statement points out, “The increase in household utility bills is expected to further harm consumer confidence and people’s lives, and the domestic economy will go from bad to worse.”
TEPCO obtains 90% of its profit from charges imposed on households. The electricity price per kWh for family users is twice the rate compared to the top-10 power-consuming corporations.
The utility explains that it will use earnings from increased electricity bills to cover its projected yearly deficit of 676.3 billion yen on average over the next 3 years. In order to cover its deficit, TEPCO should ask its big stakeholders, including major financial institutions, for financial cooperation through various methods such as debt forgiveness.
Furthermore, it should use part of the 5 trillion yen reserved by the power industry for the reprocessing of spent nuclear fuel and the final disposal of nuclear waste.
As justification for the hike, TEPCO cites the increase in business costs such as for fuel to operate thermal power stations. What they fail to mention is that the reason why the utility has to depend on thermal generation instead of nuclear energy is because the nuclear accident happened at the Fukushima Daiichi nuclear power plant.
A chair of an association, which consists of the distributors, retailers, companies of these industries, and consumer organizations, said, “It is unacceptable that the utility can think that it can easily impose its own financial burdens onto the general public and businesses.”
Tokyo’s Katsushika Ward Assembly unanimously adopted a statement submitted by the Japanese Communist Party which calls on TEPCO to reconsider its power bill hike plan. The statement reads, “Amid the protracted economic stagnation, people are facing financial hardships. If TEPCO enforces higher power rates on family users, it will have a serious negative impact on people’s livelihoods.”
The Yokohama City Assembly in Kanagawa Prefecture, Tokyo’s neighboring prefecture, also unanimously adopted a statement demanding a halt in TEPCO’s power bill hike plan. The statement points out, “The increase in household utility bills is expected to further harm consumer confidence and people’s lives, and the domestic economy will go from bad to worse.”
TEPCO obtains 90% of its profit from charges imposed on households. The electricity price per kWh for family users is twice the rate compared to the top-10 power-consuming corporations.
The utility explains that it will use earnings from increased electricity bills to cover its projected yearly deficit of 676.3 billion yen on average over the next 3 years. In order to cover its deficit, TEPCO should ask its big stakeholders, including major financial institutions, for financial cooperation through various methods such as debt forgiveness.
Furthermore, it should use part of the 5 trillion yen reserved by the power industry for the reprocessing of spent nuclear fuel and the final disposal of nuclear waste.
