Prices snap back to 2022 peaks
Spot electricity prices in Tohoku and Tokyo moved up to ¥40.18 per kilowatt-hour on Sunday. That is the strongest reading since September 2022 and the first return above ¥40 per kWh since that month.
Compared with the prior week, Tohoku gained 17% and Tokyo added 11%. Across Japan, the average settled at ¥34.44 per kilowatt-hour, up 14% week over week.
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Weather and near-term outlook
The latest jump came alongside colder-than-normal conditions and higher fuel costs. Forecasts indicate Tohoku could run as much as 4.3C below normal this week, while Tokyo is expected to be about 3C milder than usual, based on figures compiled by Bloomberg with the European Centre for Medium-Range Weather Forecasts.
Fuel backdrop
Liquefied natural gas remains a key part of Japan's power mix, and LNG prices are holding at their highest since 2022. Flows of LNG from Qatar, a leading supplier, via the Strait of Hormuz have fallen to a small share of what they were before the war.
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