Tokyo and Chubu power prices reach multi-year highs
Elevated fuel costs have driven spot electricity rates in Japan's major consumption regions to their highest levels since September 2022.
Spot electricity prices in the Tokyo and Chubu regions of Japan rose over the weekend, reaching multi-year highs due to increased fuel costs, according to data from the Japan Electric Power Exchange reported by Mint.
On Sunday, the next-day spot power price for Tokyo climbed 1.1 per cent weekly to ¥36.11/kWh, while Chubu rates rose 7.2 per cent to ¥36.29/kWh. These figures represent the highest levels since September 2022.
In contrast, the nationwide average price fell by 8.7 per cent to ¥30.09/kWh on the same day. Traders noted that spot liquefied natural gas (LNG) prices reached approximately $34 per million British thermal units on Friday.
Tokyo Electric Power Co. Executive Vice President Hiroyuki Yamaguchi stated during a Friday earnings briefing that average household electricity bills in Tokyo are expected to hit a record ¥9,738 in November. Yamaguchi added that bills could exceed ¥10,000 if the current price surge persists.
Japan's fuel-cost adjustment system uses a three-month average to automatically update electricity rates based on the import prices of coal, crude oil, and LNG. Tensions in the Middle East have escalated following an attack on a Pakistani LNG carrier near the Strait of Hormuz on Friday.