Japan's Renewable Energy Act enacts hope that some companies can enjoy preferential tariffs

According to the report of Japan’s “Asahi Shimbun” on July 12, the “Special Measures for Renewable Energy Sources” submitted by opposition parties was announced on the 12th. The bill mainly deals with the acquisition of all solar power plants and wind power plants. The acquisition fees will be added to the electricity bills, while the electricity bills for major power companies such as steel and chemicals will be reduced by more than 80%. Although there are differences in the purchase prices for different types of natural energy, the additional costs may increase with the set prices.

The Party and the Liberal Democratic Party unanimously agreed on the 19th to urge the House of Representatives to pass this bill, which is expected to be generated on the 26th and will come into effect next July. In addition, in order not to burden the reconstruction of enterprises and households in the earthquake-stricken areas, the electricity tariff increase will be postponed until March 2013.

According to the Ministry of Economy, Trade and Industry, after the implementation of the law, by 2020, the electricity charge for businesses and households will increase by 0.5 yen per 1 kWh, and the average monthly household electricity bill will pay 150 yen more.

The amended agreement is based on the issue of the upward adjustment of electricity charges in the industry. As more electricity is consumed, the more fees are paid, the company blames the bill for negative impact on competition. Therefore, in the amendments, enterprises that exceed the average electricity consumption of the manufacturing industry by 8 times can enjoy preferential policies of more than 2% for increased electricity charges.

This part of the reduced electricity bill will be filled by the petroleum coal tax paid by the power company. Due to the shutdown of nuclear power plants, the demand for petroleum and coal has increased, so tax revenue has also increased accordingly.