Japan's ten major power utilities announced plans to lower electricity rates by over ¥1,000 for standard households starting January 2026, supported by resumed government subsidies to offset inflation. This continues intermittent subsidies in place since 2023, targeting the January to March period when heating demand typically increases.
On December 25, 2025, Japan's ten major power utilities revealed plans to reduce electricity rates starting January 2026, with standard household bills dropping by more than ¥1,000 due to reinstated government subsidies aimed at mitigating inflation's effects.
In Tokyo Electric Power Company Holdings' regular service area, the average household fee will decrease by ¥1,170 to ¥7,464. Chubu Electric Power faces the largest cut at ¥1,175, while Hokkaido Electric Power sees the smallest at ¥1,028.
The government has set electricity subsidies at ¥4.5 per kilowatt-hour for households. For city gas, subsidies stand at ¥18 per cubic meter, leading to a ¥545 reduction for Tokyo Gas standard households to ¥5,106. Osaka Gas will experience the biggest drop at ¥548, and Saibu Gas the smallest at ¥419.
These subsidies, which have been applied intermittently since 2023, automatically appear as discounts on bills based on usage. The latest round covers January to March 2026, a period of heightened heating needs, with the government anticipating a total curb of about ¥7,300 in household utility expenses.
The initiative seeks to ease the strain of rising living costs on families across Japan.
