Press Conference by Minister Nishimura (Excerpt)

*Note: This is a provisional translation for reference purposes only.

 

 9:40-9.50 a.m.
Tuesday, May 30, 2023
Press Conference Room, METI Main Building

Opening Remarks

Electricity Rates

I would like to mention one point.
The other day, we approved increases in regulatory electricity rates planned by seven major power companies. The new rates will become applicable from June 1. We would like to carefully provide information and explanations so that users can accurately understand the specifics of the rate revisions and the effects of the support provided for price reductions.
As a measure to mitigate the impact of the increase in electricity charges, we will continue to provide support to reduce the monthly electricity charge for the standard household by around 2,800 yen. In addition, we conducted a very strict assessment. Despite the rate increases, the electricity charges collected by almost all electric power companies from the standard household will be lower than the levels in February 2022, just before Russia’s aggression against Ukraine started, according to a trial calculation made in consideration of such factors as the decline in the FIT surcharge for FY2023 and the fuel cost adjustment.
Furthermore, the most recent fuel cost adjustment is calculated based on the preliminary trade statistics in April, which were recently published. As a result of this calculation, the electricity charge for the standard household in July—meaning the charge for electricity usage in June—will be reduced further, by around 300 to 600 yen.
In the medium to long term, we will advance the shift to carbon-free power sources, such as renewable energy and nuclear power, in addition to promoting thorough energy conservation and efficiency improvements. Through these efforts, we would like to overcome the excessive dependence on fossil energy sources and proceed with the transition to a resilient energy supply-demand structure that can withstand fuel price increases.
As for the subsidy for energy conservation/efficiency improvement, funds totaling 280 billion yen have been secured for households and funds totaling 500 billion yen have been secured for companies over a three-year period. We hope that those funds will be used in an effective manner. Although the fuel prices have been relatively stable, a crisis could occur at any time and the situation could change abruptly. Therefore, we aim to create an energy supply-demand structure that is resilient to crises from a long-term perspective.

Question-and-Answer Session

IPEF

Q: At the IPEF ministerial meeting recently held in Detroit, a substantial conclusion was reached in the area of supply chains. I assume this marks a significant result achieved one year after the launch of the IPEF. On the other hand, in the remaining three areas, there are differences in eagerness among the member countries and some people expect that it will be difficult to reach an agreement. Going forward, how does Japan intend to approach the negotiations?

A: First, at the IPEF Ministerial Meeting, a supply chain agreement was substantially concluded. We agreed on building resilient supply chains with reliable partners. I believe it is very significant that the agreement on enhancing supply chain resilience was reached with countries including major countries of the Global South that are not participating in the CPTPP, such as India and Indonesia—and also the Philippines if we regard a population size of 100 million as the threshold for the major country category.
That said, it is important to approach the remaining three areas—trade, clean economy, and fair economy—with a future-oriented stance, by going beyond the scope of traditional trade agreements.
The hydrogen initiative, on which an agreement was reached at this time under the leadership of Japan and Singapore, may serve as model case. By developing concrete projects that lead to tangible benefits, we would like to foster momentum for countries to take on new challenges.
In particular, regarding clean economy, there are high expectations for Japanese support in areas such as technology and human resource development. Therefore, Japan would like to exercise leadership in the negotiations toward creating an attractive package that strikes a balance between high-level rules and actual benefits gained through cooperation. We hope to accelerate the negotiations, especially in cooperation with the United States.