Kansai: New rate hike

 December 24, 2014

Kansai Electric applies for fresh utilities rate hike

http://mainichi.jp/english/english/newsselect/news/20141224p2g00m0bu048000c.html

OSAKA (Kyodo) -- Kansai Electric Power Co. applied Wednesday with the government for a fresh electricity rate hike, seeking to increase bills for households by 10.23 percent on average from April amid higher fossil fuel costs after its nuclear reactors were idled.

The utility, which had relied heavily on atomic power generation before the 2011 Fukushima nuclear accident, last raised household bills in May 2013. It also plans to increase bills for corporate customers and factories, for which it does not require government approval, by 13.93 percent.

The industry ministry will discuss whether the hike proposed by Kansai Electric, which serves the Kansai region in western Japan, is reasonable before deciding whether to approve the move.

The margin of the markup could still be trimmed in the course of scrutiny by the Economy, Trade and Industry Ministry. At the proposed rate, the electricity bill for an average household is projected to increase by 744 yen per month to 8,355 yen.

All of Japan's 48 commercial nuclear reactors were gradually taken offline following the nuclear meltdowns in March 2011, which heightened concerns over nuclear power. At least four of them, including two Kansai Electric units, may go back online next year, but the outlook for most of the other reactors remains uncertain.

Kansai Electric is expected to record a group net loss in fiscal 2014 through March for the fourth straight year. The company expects to post 126 billion yen in its latest loss and a consolidated operating loss of 100 billion yen, on sales of 3.44 trillion yen, according to its full-year earnings projection released Wednesday.

President Makoto Yagi said last week the firm is expected to remain in the red in fiscal 2015 without an electricity markup.

But since the last rate hike, Kansai Electric's electricity power sales have been on the wane as large-lot customers have switched to independent power suppliers that offer lower electricity rates.