Japan eyes 20% rate cut by 2001

According to newspaper reports from Japan, the Trade Ministry and the electric power industry plan to cut the country`s electricity rates by about 20 percent from current levels by 2001 by reducing capital investment in the sector. Japan`s electricity rates are high when compared to those of other developed countries, and the rates are being blamed on construction expenses. If the proposed cuts in construction do not have a significant impact on electricity price, there could be restructuring in the future to separate power generating businesses from transmission and distribution businesses.