Key facts
- Japan's average power prices rose over 25% week-to-week to 31.15 yen per kWh on Monday.
- Spot LNG prices for delivery into north-east Asia in December reached $29.30 per MMBtu, a four-year high.
Japan electricity prices jump 25% on soaring LNG and coal costs
IN SHORT
Japan's average electricity prices surged over 25% week-on-week to 31.15 yen per kilowatt-hour on Monday. The increase is driven by soaring liquefied natural gas and higher coal prices, with Japan increasing coal use for power generation amid elevated LNG costs.
Key Numbers
31.15Japanese yen per kilowatt-hour for average electricity prices on Monday
25percent week-to-week increase in Japan's average electricity prices
29.30US dollars per million British thermal units for spot LNG in north-east Asia in
30percent increase in global benchmark coal prices compared to pre-war levels
Who's Involved
Japan Electric Power Exchange
provided data on nationwide power prices
Indonesia
reduced supply from top thermal coal exporter
↳ Why This Matters
Japan's increased reliance on coal and the surge in LNG prices directly impact its energy import bill and electricity costs, potentially affecting industrial competitiveness and household budgets. The global competition for LNG and supply constraints in coal markets highlight broader energy security challenges.