Japan will cut household electricity bills by about 20 percent early next year under a new economic package amid accelerating inflation, a source familiar with the matter said Wednesday.
The government is expected to spend around 25 trillion yen ($170 billion) on the package, details of which will be announced as early as Friday. Lowering household electricity bills by 7 yen per kilowatt-hour will be a main pillar of the package.
For companies, the government will provide support of 3.5 yen per kilowatt hour, according to the source.
In addition to electricity, an average household is expected to save about 900 yen in monthly city gas service charges, with the government providing support of 30 yen per cubic meter of consumption.
Combining utility bill support with an ongoing subsidy program for oil wholesalers to help reduce retail gasoline and kerosene prices, a Japanese household could save a total of about 45,000 yen from January through September.
The government eyes extending the subsidy program beyond December but at a reduced amount, the source said.
Prime Minister Fumio Kishida has instructed officials to draw up the new economic package focusing on ways to ease the pain of higher prices on households, spurring wage growth and revving up an economy still recovering from the coronavirus pandemic.
