A Ministry of Economy, Trade and Industry expert panel charged with examining Kyushu Electric Power’s rate hike request issued a report to Minister Motegi calling for deeper employee salary cuts and reductions in fuel costs. In an effort to further rein in fuel costs, METI plans to ask Kyuden and Japan’s other power companies to report their procurement prices for liquid natural gas. This is expected to push Kyuden’s planned rate hike back from April 1 to May 1. Kyuden applied to hike its rates for residential customers by 8.51%, but the panel chair said this could be reduced by “around 1%”, provided a billion yen reduction personnel and other costs were made. Kyuden’s application also outlined a 21% reduction in average annual salaries from ¥8.26 million to ¥6.5 million, but the panel determined a 28% cut to ¥5.98 million would be more appropriate based on the standard average wages in similar sized corporations as well as wages for gas and other utility companies. Furthermore, the panel suggested slashing the average executive salary of ¥33 million, which was criticized as too high, to ¥18 million—the average for executive-level bureaucrats in central government agencies. The panel’s recommendations will be deliberated by the Cabinet Office Consumer Commission, and feedback will be collected from consumer groups in Fukuoka before a final decision is issued by METI in consultation with Masako Mori, Minister of State for Consumer Affairs. Source: Nishinippon Shimbun, Mar. 7
