Japan considers subsidies for January-March electricity and gas bills
In short
The Japanese government has begun considering subsidies for electricity and gas use from January to March next year, several government officials said on 21 October. The money is expected to come from reserve funds set aside for the Middle East situation, and October electricity bills at all 10 major utilities were the highest on record.
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The Japanese government has begun considering subsidies for electricity and gas used from January to March next year, several government officials said on 21 October, according to Nishi-Nippon Shimbun, Asahi Shimbun and Yahoo! News Japan. The outlets said the aim is to limit household burdens during the winter, when heating demand rises, as the worsening Middle East situation makes higher energy prices unavoidable. [ 1 , 3 , 5 , 6 ]
The money is expected to come from reserve funds secured to respond to the Middle East situation. Nishi-Nippon Shimbun and Yahoo! News Japan said the government also has a supplementary budget in view, and is considering paying the subsidy earlier, starting with December usage. TBS NEWS DIG, citing JNN reporting, said the government is instead adjusting to restart the subsidy from January, and will discuss the amount with the ruling parties using past cases as a reference. [ 1 , 3 , 4 ]
The outlets pointed to record bills. After the July-September subsidy ended, electricity charges for October use were the highest on record at all 10 major power companies, and city gas charges also rose. Asahi Shimbun said the government judged that a new subsidy was needed, and that it also plans to continue the gasoline subsidy. It added that the measures have been run on and off despite being temporary, so the fiscal burden will grow further. [ 1 , 3 , 5 , 6 ]
Chief Cabinet Secretary Minoru Kihara, asked about a winter subsidy at a press conference on 21 October, said the government wants to respond appropriately without missing the timing when necessary, including by using reserve funds. Yahoo! News Japan recalled that Prime Minister Sanae Takaichi said in the upper house on 8 October that the government would respond appropriately after watching how energy price changes affect households, and that Koichi Hagiuda, acting secretary-general of the Liberal Democratic Party, said on an NHK programme on 18 October that utility costs must be examined toward year-end. [ 3 , 6 ]
Mainichi Shimbun said the July-September subsidy drew 513.5 billion yen from general-account reserve funds and cut the burden for a standard household by about 5,000 yen over three months. Last winter's January-March support used 529.6 billion yen and cut it by about 7,300 yen. TBS NEWS DIG gave the figures as about 7,000 yen last winter and about 5,000 yen this summer, and said the electricity, gas and gasoline subsidies have so far received about 15 trillion yen in budget funds. It said the government currently limits gasoline to about 170 yen per litre. [ 4 , 6 ]
Why it matters
The plan would restore household support for winter heating costs after the July-September subsidy ended. Asahi Shimbun notes that the repeated, on-and-off subsidies add to the fiscal burden.
Key facts
- The government has started considering subsidies for electricity and gas used from January to March next year, citing the worsening Middle East situation and higher energy prices. [ 1 , 3 , 5 , 6 ]
- Funding is expected to come from reserve funds secured to respond to the Middle East situation. [ 1 , 3 , 4 , 5 , 6 ]
- Electricity bills for October use were the highest on record at all 10 major power companies, after the July-September subsidy ended. [ 1 , 3 , 5 , 6 ]
- The government is also considering paying the subsidy earlier, from December usage. [ 1 , 3 ]
- TBS NEWS DIG, citing JNN reporting, said the government is adjusting to restart the subsidy from January and will discuss the amount with the ruling parties, using past cases as a reference. [ 4 ]
- Asahi Shimbun reported that the government also plans to continue the gasoline subsidy. [ 5 ]
Confirmed by several sources
- The government has started considering subsidies for electricity and gas for January to March usage, according to several government officials. [ 1 , 3 , 5 , 6 ]
- The expected source of funds is reserve funds for responding to the Middle East situation. [ 1 , 3 , 4 , 5 , 6 ]
- Electricity bills for October use were the highest on record at all 10 major power companies. [ 1 , 3 , 5 , 6 ]
Still unclear
- How large the subsidy will be. TBS NEWS DIG said the amount will be discussed with the ruling parties with reference to past cases; no document gives a figure for the planned subsidy.
- Whether payment will start in December or January. Nishi-Nippon Shimbun and Yahoo! News Japan said the government is also considering paying from December usage, while TBS NEWS DIG said it is adjusting to restart from January.
- Whether a supplementary budget will be compiled. Nishi-Nippon Shimbun and Yahoo! News Japan said compiling one is within view; the other documents do not mention it.
- Chief Cabinet Secretary Minoru Kihara said at a press conference on 21 October that the government wants to respond appropriately without missing the timing when necessary, including by using reserve funds. Reported by a single source so far
What local media are saying
Timeline, local time
- Nishi-Nippon Shimbun published the report that the government is considering January-March electricity and gas subsidies, citing several government officials on 21 October. [ 1 ]
- TBS NEWS DIG published JNN's report that the government is adjusting to restart the subsidies from January. [ 4 ]
- Asahi Shimbun published its report, noting the gasoline subsidy would also continue. [ 5 ]
- Mainichi Shimbun published its report with Chief Cabinet Secretary Kihara's remarks from his press conference on 21 October. [ 6 ]