As an economic giant in the Asia-Pacific, Japan needs huge energy supplies to sustain its industries and its population. The country continues to support the demand, despite being poor in resources of energy within its territory. Understand how energy is generated in the country and the cost it brings along.
Table of Contents
Energy in Japan
Since its earliest utilization, electricity has been one of the most important utilities for man. From our individual lives to the macro levels of our society, electricity played a significant role. Japan is no stranger to this claim. With its introduction to the country in the late 1800s, electricity has laid the bedrock for the country’s modernization. It provided the power for the industries in the country to establish their foothold on the economy. Households also benefit from this utility since its introduction, giving light and power to appliances that made up an everyday life of a Japanese. Now, one may ask how Japan’s electricity supply is generated and transmitted for use?
Japan’s energy supply is highly diverse. A combination of non-renewable and renewable resources make up the country’s stockpile. On non-renewable resources, the country uses oil and liquefied natural gas. Hydroelectricity, geothermal, solar, wind, and biomass energy comprise its renewable resources. Also, the country is known for using nuclear energy. However, due to the Great East Japan Earthquake of 2011, the energy production of Japan underwent changes that affected the consumption rates as well as the trajectory of production in the future.
Before 2011, nuclear energy comprises more than 30% of Japan’s electric grid but after the earthquake, the government shut down most of Japan’s nuclear power plants, creating a huge energy gap that is gradually fulfilled by thermal power plants. Although the Japanese government nuclear energy was still considered as an important role for energy production, strict safety measures must be observed. By 2019, only 5 out of 19 nuclear power plants in Japan were operating.
※ World Nuclear Association, "Nuclear Power in Japan"
Over the past decades, electricity consumption at the household level in Japan has been on a constant rise. Determined by factors of usage, including heating and appliance usage, consumption levels may not slow down any time soon. In the 5th Strategic Energy Plan, the Japanese government outlined its objective to fill-in the consumption demands by diversifying its energy supply. Referred to as the “Energy Mix”, the plan aims to ensure energy security without neglect for safety. This would be attained through the use of high-end technology in energy production.
※ The Federation of Electric Power Companies of Japan, "Electricity Review Japan"
Writer's Pick
Electricity cost
Here is a concise breakdown of current electricity costs in Japan at the household level.
Various divisions determine the cost of electricity in Japan. Divisions include demand charges, energy charges, and other additional rates that cover the production and transmission of electricity. Be mindful that taxes are already included in each of the costs. Additional costs mentioned are fixed depending upon the provider and are subject to changes. Nevertheless, they are added to monthly electricity bills. Although base electricity rates are still in effect, Japan applies them in complementing two divisions of the cost itself: demand charge and energy charge.
Demand charges are set depending upon the contracted amperage of the household. Contracted amperage indicates the household’s energy meter capacity. It is set by the number of outlets that the household has and the number of possible appliances that could be plugged in and consume electricity. For example, the contracted amperage of a household is set at 10A, and the demand charge for such level would be, for instance, ¥286. Regardless of consuming electricity throughout the month or not, there will always be a fixed ¥286 in the electric bill. Demand charges are fixed rates but vary from one household to another.
An important feature of electric utility companies in Japan would be the usage of a multi-tiered charging system. It is here where energy charges are applied. Rated at per kWh, they set fixed charges on every tier level. For instance, Tokyo Electric Power Corporation charges ¥19.88 for 0-120 kWh tier while ¥26.46 for 120-300 kWh tier. Each tier is charged differently to track fluctuations within the usage rate of electricity. This means that the simultaneous usage of appliances that require higher kWh would reflect on a particular tier and may cost different electricity rates.
The final bill
To sum it all, the higher usage of electricity, the higher your electricity due will be. The consumer can then assess his or her electric bill how energy charges are collected. Provided that the tier system is being applied, the prices will be provided in their corresponding tier level. The calculation is set by multiplying the fixed rate with the number of kWh consumed in that particular tier. Then, each tier will be added up to obtain a total of energy charge fees.
Now, upon learning the major components of electric cost in Japan, we focus on the additional cost which are indicators of different elements of the general electric utility. First, the fuel cost adjustment charge is set to serve as an intermediary for the costs of fuel in the global market. Energy production is affected by fuel prices, and this charge demonstrates the changes in direct proportion. Second would be the renewable energy promotion surcharge. This additional cost is a fee collected from electric consumers used to repay electric companies in their usage of renewable sources, including its distribution and transmission.
※ TEPCO Energy Partner, Incorporated, "Electricity Rate Plans"
The division of electric cost itself is daunting at first glance. But once you understand how it’s calculated, it’s easier to figure out how to manage efficiently the cost of electricity in Japan.
Tips for efficient electricity usage
Of course, managing electricity costs and consumption is not foreign for people nowadays. Drawn to the increasingly relevant concept of efficiency and environmentalism, people are taking measures to save energy.
In Japan, ahead-thinking lifestyle measures would give an individual and his or her family a good disposition in terms of thrift consumption. Buying appliances with efficient grading or energy saving functions could be one thing. Another would be the appropriate observation of daily consumption such as unplugging appliances that are not used or turning off idle lights.
Most electric companies record peak electricity consumption during winter and this is due to the intensive use of Japanese households of heaters. Poor insulation with the use of heaters leads to higher energy misuse. A regular check with the house’s insulation system may prevent such happenings.
Also, ensuring an alternative for electric heaters may benefit consumers as well. For example, in Hokkaido, locals use a kerosene heater or kotatsu during the winter season as a substitute for electric heaters. Heating one area may be more cost effective than heating the entire apartment or house.
Lastly, consumers can come up with lifestyle changes whenever deemed possible. Especially if there has been a constant encounter with high electric bills, one must consider a re-examination of the general consumption process. For instance, taking a closer look at the meter may bring about unnecessary aspects that are charged to the bill. Understanding and adjusting the house’s contracted amperage rating may cause huge changes within the bill.
Summary
The general picture of Japan’s energy system is commendable. With a diversified supply and extensive electricity cost breakdown, it ensures the consumer of a secured direction about consuming electricity. Although we are now knowledgeable of the average prices and breakdown, the costs of electricity in the country still vary from one place to another. However, regardless of the prices and the changes within it, it is the consumer’s responsibility on how to use it efficiently.
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