Japan electricity price hike to highest in 5 years

The rise in electricity bills in Japan is poised to jump to the highest level in five years, as a result of expensive fuel imports, further stoking consumer inflation fears.

Power providers around the world are grappling with sky-high fuel prices due to a global energy crunch, and are forced to pass those costs onto customers - or else they will go bust. Governments are beginning to take action to help families and businesses stuck with the expensive bills.

Nine of Japan s regional utilities will increase power rates in March to the highest level in data going back five years, NHK reported Friday.

One utility will keep rates unchanged as it has hit its upper limit for costs passed on to consumers, according to the NHK report.

An average household in Tokyo is expected to pay around 8,244 for their electric bill in March, up nearly 30% from a year ago and the highest in data available through June 2016 according to Tokyo Electric Power Company Holdings Inc. The rates of Chugoku Electric Power Co. and Kansai Electric Power Co. will hit the upper limit. Chubu Electric Power Miraiz Co. will raise its price for a standard household by 292 to 7,949, the steepest increase among the nine firms.

A fuel adjustment system automatically sets electricity rates for each regional utility based on a three-month average of import prices for liquefied natural gas, crude oil and coal. It reflected in electricity prices for consumers two months later.

Four major city gas suppliers in the country - Tokyo Gas Co., Osaka Gas Co. and Saibu Gas Co. - will raise their rates in March, increasing prices for the seventh month in a row.