Saturday, September 28, 2013
Power, Gas Companies To Lower Rates In November
TOKYO (Nikkei)--Ten power and four city gas companies on Friday announced lower pricing for November, based on a system in which fuel cost fluctuations are figured into the prices customers pay.
November rates were computed based on average June-August fuel prices. During that period, liquefied natural gas prices dropped 2.4%, crude oil prices dipped 0.1% and coal prices were down 2.6% compared to the May-July period, which was the standard for computing October prices. As a result, the companies will all reduce prices for the first time in 11 months.
Heavily dependent on LNG, Tokyo Electric Power Co. (9501) and Chubu Electric Power Co. (9502) had been steadily raising prices since spring, but will lower them in November for the first in time nine months and eight months, respectively. Tokyo Electric's typical household bill will fall by 58 yen from October to 7,946 yen, dipping below the 8,000-yen level for the first time in three months.
(The Nikkei, Sept. 28 morning edition)