Tokyo Electric Power Co. (Tepco) said June 26 that in September it will lift the base rate used to calculate electricity bills in order to pass on rising fuel costs to customers.

The size of the increase will be decided in July, and the plan will be submitted to the Ministry of Economy, Trade and Industry for approval.

Power utilities review their prices every three months to reflect changes in fuel costs. However, prices can only be raised by up to 50% of the base price charged for electricity.

If fuel costs rise to a point exceeding the 50% level, the utility will have to bear the excess which it is not allowed to pass on to customers.