The Japanese government announced on November 1 that it is asking customers to turn off unnecessary or unnecessary lights, reduce the brightness of office lighting and lower the temperature of heating equipment without affecting their health during power-saving periods. The government also plans to work with power companies to ask households and businesses across the country to conserve electricity from Dec. 1, 2022, to March 31, 2023, offering credits to households that use 3% less electricity each month compared with the same period last year. The Japanese government has not set a specific amount of electricity saving, but called for "electricity saving within a reasonable range." It is the first time in seven years that the Japanese government has asked for electricity saving in winter. The Japanese government is concerned about energy security even though the reserve ratio, which reflects the power supply capacity, can meet the minimum level.
Japan's Sankei Shimbun said that due to the conflict between Russia and Ukraine, Japan cannot steadily import liquefied natural gas (LNG) for thermal power generation from overseas, and power supply could be strained if natural disasters shut down power plants. To ensure the power supply is safe, the Japanese government has asked to conserve electricity this winter. Japan s Asahi Shimbun reported that the supply of liquefied natural gas, the main fuel for thermal power generation, is not stable, and that Japan is negotiating with Russia on the development of Sakhalin 2 LNG project in the Far East, but no agreement has been reached. "We made the decision to save electricity at a time when the power supply is still severe," Japanese Trade Minister Yasminoru Nishimura said at a press conference on Monday.
On November 2, the Asahi Shimbun quoted Hiroyuki Yamaguchi, vice president of Tokyo Electric Power Company, as saying that the company will consider raising electricity prices as fuel prices continue to rise and the yen continues to weaken, worsening the company's balance of payments. In addition, companies such as Tohoku Electric Power Company and Hokuriku Electric Power Company have made it clear that they will raise electricity prices, while Shikoku Electric Power Company and Okinawa Electric Power Company have begun to study whether to raise electricity prices.
In this regard, Japanese companies have "mixed feelings". According to Japan's Tokai TV News network earlier reported that since October, the temperature in the East China Sea has gradually dropped, and the electricity price has risen, leading to the popularity of electric heating with power saving function, especially some far infrared electric heaters, only half the power consumption of ordinary electric heaters, popular. But most small and medium-sized businesses will suffer from this winter's power savings. Retail and restaurant companies will suffer a drop in operating profits, the Nikkei business daily reported.
This summer, the Japanese government also issued a call to save electricity. Statistics based on the relevant data show that combined with data from 80 Japanese companies mainly engaged in retail and catering, SMCO increased by 9.8% from March to August 2022 over the same period in 2021, the highest increase since 2014. The weakening yen and rising energy and resource prices have led to a rise in utility bills, leading to a decline in profits for small and medium-sized companies that are struggling to cut labor and advertising costs.