Japan Power Price Jumps to One-Month High on Tokyo Snow Forecast
(Bloomberg) -- Japan’s wholesale power rate jumped to the highest level in a month amid forecast signaling parts of Tokyo could see snow on Thursday, which could boost demand for heating.
The country’s next-day spot electricity price spiked to 29.78 yen a kilowatt-hour on Wednesday, the highest since Nov. 21, according to data compiled by the Japan Electric Power Exchange.
The price jump comes as frigid temperatures are expected to hit the nation’s capital on Thursday, putting more pressure the power market which has been on its toes as memories of last winter’s eye-watering rally linger. Parts of Tokyo could see snow or rain on Thursday, according to the Japan Meteorological Agency.
Meanwhile, a surge in liquefied natural gas prices over the last few days may also be lending support to Japan’s power rates.
With global energy crisis boosting fuel costs across the world, Japan’s trade ministry has been taking measures to make sure the country’s utility providers have enough LNG stockpiles to get through the winter months. LNG inventories held by Japanese power companies were at 2.42 million tons on Dec. 23, well-above the 4-year average, according to the trade ministry.
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