Tohoku Electric to hike power rates by 11%

It’s their first tariff increase in 33 years.

Tohoku Electric Power Company wants the rate hike to improve its financial position that has worsened due to rising fuel costs from thermal power generation.

Sources said Tohoku Electric, which is based in Sendai, could apply for government approval this week to implement the rate increase. Sendai was heavily hit by the March 2011 earthquake and tsunami and there are fears the rate hike might impede reconstruction efforts.

Tohoku Electric also plans to raise electricity bills for corporate users, a step that does not require government approval. The increase in these rates is expected to surpass the 11% planned for households.