Kyushu Electric Power Company announced yesterday that they are planning to increase household electricity rates by 8.51% and corporation/enterprise electricity rates by 14.22%. An average ¥378 increase per month for household electricity bills is expected after April 2013. The company official stated that this increase is necessary in order to stabilize the company’s future. The last rate hike last happened 32 years ago in 1980 during the second oil shock. The company will also reduce staff salaries. For example an employee earning ¥8,260,000/year will be reduced to ¥6,500,000. This is the first large scale pay cut since 1951. A savings of 16.8 billion yen per year is expected. They will cut down expenses on advertising and CSR projects. With the rate hike they can become profitable again in 2014. Source: Nishinippon Shimbun Nov 28, http://www.nishinippon.co.jp/nnp/item/336233
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