Toshimitsu Motegi, the Minister of Economy, Trade and Industry, announced that Kyushu Electric Power would be allowed to hike residential electricity rates 6.21 ~ 6.25%, a full two points lower than the 8.51% requested by the company. To lessen the impact on the citizens, the Ministry reduced the rate increase after determining that Kyuden should be able to cut an additional ¥30 billion in personnel expenses and fuel costs. The new rate will go in to effect on May 1 to allow time to notify customers, who can expect their standard rate (for 300 kW/h) to increase by ¥220 per month. Kyuden had also planned a 14.22% rate hike for business customers, a move that does not require METI approval, but will pare the increase back to 11.91 ~ 11.95% in light of the Ministry’s decision. The rate hike will go into effect as planned on Apr. 1, but the lower rate will be applied retroactively once the METI-approved residential rate goes into effect. After a Cabinet Ministers Meeting on Mar. 29, the Minister of METI will request an amended application from Kyuden, and the rate hike will be formally approved by the METI early next week. Source: Nishinippon Shimbun, Mar. 28
