Tokyo Electric Will Consider Halving Planned Rate Increase

By Stuart Biggs

Sept. 20 (Bloomberg) -- Tokyo Electric Power Co. will consider the views of the government before deciding on an increase in rates, it said in a statement to the Tokyo Stock Exchange today.

Asia's biggest utility, also known as Tepco, may limit a rate rise to about half of an earlier planned 12 percent after the government urged power producers to hold down any increase, the Nikkei newspaper reported today.

The Tokyo-based company hasn't yet decided on the increase, it said in the statement, adding that it will consider the views of Economy, Trade and Industry Minister Toshihiro Nikai.

Nikai met with electric company chiefs yesterday to persuade them to reconsider rate increases planned for January in light of the impact of those costs on people's lives, the Nikkei reported.

To contact the reporter on this story: Stuart Biggs in Tokyo at sbiggs3@bloomberg.net.