Fifth Japanese utility asks for power rate increase

Shikoku Electric Power Company wants a 10.94% electricity rate hike.

Under the proposed increase, a household using around 300 kilowatt hours per month would see its monthly bill rise 580 yen, or 8.5%, to 7,433 yen.

Shikoku Electric said it is also planning an average 17.50% rate hike for corporate users from July 1, a move that does not require government approval.

The regional utility joins four other regional utilities petitioning for a rate increase following a surge in power demand resulting from the prolonged shutdown of all but two of Japan’s 30 nuclear reactors. Regional utilities have been boosting thermal power generation to make up for the loss of nuclear power.

Shikoku Electric said that with all its nuclear reactors offline, it has made various efforts to cut costs, but increasing fuel outlays have not been at a level that can be absorbed by these efforts.

Shikoku Electric plans to resume the operation of its No. 3 reactor at the Ikata plant in Ehime Prefecture on July 19. It will have to comply with new and tougher regulations prescribed by the Nuclear Regulation Authority, however.