Tokyo Electric Power Co (Tepco) is holding discussions on raising its electricity charges by more than 10 per cent.

The accident at its Fukushima nuclear power plant has forced Tepco to rely more on thermal power generation, leading to higher fuel costs.

Fuel prices are automatically factored into electricity bills, but Tepco seeks a government endorsement to overhaul its basic pricing system through a revision of all its costs, including personnel and fuel expenses.

Tepco plans to submit an application for a price increase in October, with implementation next spring if approved. The average monthly electricity bill currently stands at $88, and Tepco plans to ask for permission to increase this by 10-15 per cent.

The Japanese government is believed to be cautious about a price increase, as an increase would draw strong opposition from consumers. Tepco has said that it plans to seek to win the public’s understanding by further streamlining operations.

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