Subsidies end just before the peak of summer… A price increase of 3,000 yen compared to last year?!

We are pleased to announce that “enepi”, a gas/electricity company information and price comparison service operated by ZIGExN Co., Ltd. (Headquarters: Minato-ku, Tokyo, Representative Directors, Operating Officer, and CEO: Joe Hirao, Tokyo Stock Exchange Prime: 3679, hereinafter referred to as ZIGExN), has compiled information on trends and realities of household utility costs, as well as savings methods, based on its own research data.

The Japanese government ended its support program, the “Electricity and Gas Price Volatility Mitigation Project,” which began in January 2023, in May 2024 in response to the surge in fuel prices due to the Russia-Ukraine situation. Additionally, the government raised the renewable energy surcharge in April, resulting in increased electricity rates. With the depreciation of the yen, real wages have recorded a consecutive 25-month decline, the longest on record(※1), increasing the financial strain on households. In such circumstances, reviewing household utility costs is essential to maintaining a comfortable living environment while protecting household finances. To address this, “enepi” has conducted a survey on the actual conditions of household utility costs, including predictions for electricity rates after the end of subsidies and comparisons of rates for electricity, city gas, and propane gas. We are pleased to present a report summarizing the results and savings methods.

※1：Ministry of Health, Labour and Welfare: “Monthly Labour Survey (April 2024)”
*Please note that the graphs and tables in this report are based on “enepi” calculations and may include rounding, so calculation values may not match exactly.

■Accounting for about 75% of utility costs! Rising electricity and gas prices are increasingly putting strain on household budgets year by year

Utility costs refer to expenses incurred from using essential services such as water, gas, and electricity. In recent years, there has been much discussion about rising prices. These costs fluctuate constantly due to a complex mix of factors, including changes in demand, energy price fluctuations, climate conditions, economic conditions, interest rates, political situations, and international relations. According to the “Household Survey Annual Report: Household Income and Expenditure (2023)” by the Ministry of Internal Affairs and Communications, over the past three years, electricity and gas prices have reached new peaks each year, while water rates have remained nearly flat. In other words, the recent surge in utility costs is primarily due to the increase in electricity and gas prices, a trend that has been continuing to strengthen in 2024.

*Ministry of Internal Affairs and Communications “Household Survey Annual Report: Household Income and Expenditure (2023)”

■A 3,000 yen increase due to the end of subsidy?! Electricity price forecasts for June and July

Due to factors such as a dramatic increase in fuel prices, electricity prices from January to August 2023 were 7 yen per kWh. Subsequently, starting in September, a subsidy of 3.5 yen per kWh was introduced as a support measure. However, in May 2024, this subsidy was reduced to 1.8 yen per kWh, and starting in June, the subsidy will be completely abolished. For a household of three people, compared to June last year, this year will see an increase of 3,010 yen previously covered by subsidies. Homes with higher electricity consumption or larger households are likely to experience more noticeable effects from the price increases.

【Table 1: Transition of Electricity Subsidy Amount for 3-Person Households】

*Based on the “Household Energy Usage (2018)” by the Ministry of the Environment and “Electricity and Gas Price Volatility Mitigation Measures by the Government (2024)” by Tokyo Electric Power Company

Furthermore, based on data from “enepi” users, we have summarized the trends in electricity billing amounts from September 2023 to May 2024 and predicted the bills for June and July.
Due to reductions in subsidies, electricity bills have continued to increase. July, in particular, with increased electricity consumption due to rising temperatures, is expected to have a significant impact on household budgets. Households with three or more members are likely to exceed ¥20,000 per month, indicating a tough financial burden this summer.

*Created based on “enepi’s” own data.

【Table 2: Forecast on Monthly Electricity Billing by Household Size】

*Created based on “enepi’s” own data.

■Price Difference of 2.8 Times! Energy Cost Comparison in High-Energy Consumption Areas Such as Bathrooms

In a typical household, the place where energy costs are particularly high is the bathroom. There are two main types of water heaters used in bathrooms: “gas water heaters” and “electric water heaters.” Gas water heaters use city gas or propane gas as fuel. The below table are the energy costs associated with each type of water heater.

*Using the calculation method for energy consumption of hot water in §5 of the Ministry of Land, Infrastructure, Transport and Tourism, calculate the annual consumption in GJ, then estimate the usage fees by reverse calculating from the conversion factor in the Ministry of Economy, Trade and Industry’s simplified calculation table for energy usage (converted to crude oil equivalent).”

【Table 3: Comparison of Energy Costs for Bathrooms (Water Heaters)】

*1 TEPCO’s “Standard S” Plan
*2 Tokyo Gas “Tokyo Area etc. / General Contract Rates (for September 2022 meter reading)”
*3 “enepi” has independently calculated based on data from the Institute of Energy Economics, Japan Petroleum Information Center (quoting values for Tokyo).

Fuel prices vary by region, and the energy efficiency of water heaters differs by model. Additionally, electricity plans can have varying rates based on usage times, making it difficult to definitively rank costs. However, according to research showing a 2.8 times price difference between city gas and propane gas, understanding current utility expenses thoroughly and making adjustments for savings can significantly reduce household burdens.

（For details on energy costs for water heaters: https://enepi.jp/articles/653）

■To Reduce Utility Costs, Implement Habitual Savings Measures and Review Your Electricity and Gas Providers　

There are several ways to save on utility costs. First, for electricity, you can efficiently use your air conditioner, properly use your refrigerator, and avoid wasting lighting. For air conditioners, effective measures include adjusting the temperature appropriately, installing insulation, and regularly cleaning the filters. For refrigerators, set the temperature to medium, reduce the time the door is opened, and keep space between food items to ensure efficient energy use. Additionally, with lighting, basic and diligent measures such as turning off unnecessary lights and adjusting brightness as needed are crucial.

Second, for gas savings, effective methods include being mindful of how you heat bathwater, shortening shower time, and cooking in bulk and freezing them. Instead of replacing the bathwater each time, efficiently use the reheating function and combine showers with baths. If your household has three or more people, taking a bath instead of just showers can help reduce utility costs. For cooking, making larger amounts and storing meals can reduce the frequency of stove use.

In addition to the habitual savings methods mentioned above, reviewing your electricity and gas providers is also an important way to reduce household utility costs. Start by understanding your current usage from recent bills and your provider’s website. Generally, electricity and gas companies offer multiple rate plans, so choose the one that best fits your lifestyle and usage patterns. Compare your current provider with others, and if another company’s plans or services are more advantageous, consider switching providers, taking into account user reviews and reputations.

■Easily compare rates with “enepi”! It also offers extensive support for switching electricity and gas providers

At “enepi,” we support switching electricity and gas providers. Our affiliated providers undergo rigorous screening, ensuring only selected companies participate. “enepi” manages coordination between your old and new providers during the switch. From requesting a quote to completing the switch, there are no costs involved. Below are the average savings when switching electricity and gas providers with “enepi”.

【Table 5: Average cost reduction when switching electricity and gas companies with “enepi” *4】

*4 The estimated values are based on the simulation conditions of “enepi”, and may differ from actual charges.

Energy savings vary depending on the type of energy, and propane gas, which is an energy source with unrestricted pricing, offers the highest potential for savings. With “enepi”, we manage electricity and gas prices that vary by region and are often unclear in the market, providing a convenient and reassuring option for easy use.

・For comparing electricity rates and switching providers: https://enepi.jp/form/electricity
・For comparing city gas rates and switching providers: https://enepi.jp/form/citygas
・For comparing propane gas rates and switching providers: https://enepi.jp/form/new

“enepi” will continue to provide various energy-related information such as fundamental knowledge and practical saving tips, supporting users in saving their household budgets and leading comfortable lives.

■About enepi

“enepi” is a unique service offering information and price comparisons for electricity, propane gas, and city gas companies, equipped with its pricing comparison system. It helps users easily search and compare electricity and gas rates, which can be complex and vary significantly by area, facilitating the review of utility costs. The service supports everything from requesting quotes to switching companies at no cost, and “enepi” handles coordination between the old and new energy or gas suppliers during the switch, ensuring a seamless transition for users.

In addition to its rate simulation feature, enepi also provides fundamental knowledge and tips on saving money related to utility costs, making it a comprehensive service where users can find cost-effective electricity and gas providers that suit their lifestyles.

URL: https://enepi.jp/?pr=press