Energy prices in Japan at the highest level in 7 years
Spot energy prices in Japan soared to the highest level since February, as the crisis of intense competition for fuels abroad began to affect the country’s electricity market.
According to Bloomberg news agency, electricity generation costs in Japan are rising with the price of natural gas and coal rising to a record level, due to lack of supplies in conjunction with the recovery of the global economy.
Japan has succeeded in recent months in avoiding the rise in energy prices as happened in Europe, thanks to efforts to stockpile fuel and increase supplies from long-term contracts.
The rise in energy prices presents a difficult dilemma for Japan, which is dependent on imports.
Although the country has spent the year preparing for the coming winter, the supply and demand crisis abroad will continue to determine its electricity prices.
This may force utilities to consider reducing the already small amount of fuel they buy on the spot market.