Hokkaido Faces Increase In Electricity Prices

Hokkaido is facing an increase in electricity prices due to the soaring energy prices caused by Russia’s invasion of Ukraine.

The monthly charge of a standard household (30 amperes, 230 kilowatt hours used per month) in January this year was JPY8862, 24% higher than January 2021 due to the increase in “fuel adjustment costs” included in the electricity bills.

However, from February this year, the bills decreased by JPY7 per kilowatt hour (JPY1610 decrease for a standard household) due to government subsidies.

From May, the prices will be reduced by another JPY2.05 per kilowatt hour (another JPY471 decrease) because of a decrease in a fee to promote renewable energy that is included in the electric bills.

Hit hard by the soaring energy prices, Hokkaido Electric Power Company (HEPCO) has applied to the government for an additional increase in electricity bills after reaching the limit of the possible price increase in the “fuel adjustment costs”.

HEPCO announced on 27 April that the entire group’s final profit and loss from the previous fiscal year was a deficit of about JPY22.1 billion, marking the first time in nine years that the full-year financial results were in deficit.

Sources:
Hokkaido Shinbun Newspaper – 17 April 2023
NHK – 27 April 2023

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