The Japanese government has released a draft relief measure which intends to reduce electricity bills for Japanese households by 20%, by providing subsidies to utility companies, amid soaring energy prices.
Under the proposal, a typical household will see a monthly electricity bill that is about JPY2,000 (US$14) lower on average, thanks a subsidy amounting to JPY7/kWh (US$5c/kWh). The price of electricity for business customers will be subsidised at JPY3.5/kWh (US$3c/kWh). The measure will be included in a JPY25,000bn (US$170bn) economic package that the government will draft on 28 October 2022. It is expected to come into effect after January 2023.
The Japanese government also proposed measures to help lower the costs of city gas by about 10%, by introducing a JPY30/cm (US$20c/cm) subsidy. A typical household will see a reduction in its monthly gas bill of JPY900 (US$6) on average. Companies that use comparatively small amounts of gas will receive the same benefit.
In addition, Japan will extend existing subsidies for gasoline and heating oil to keep prices down after December 2022. They will be gradually reduced after June 2023. The subsidies started in January 2022 and were initially expected to end in March but have been prolonged due to the energy crisis.
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