Japan Spot Power Price Jumps as Tokyo Braces for Heavy Snow

(Bloomberg) -- Japan’s wholesale power rate spiked as a forecast for potentially heavy snow in the nation’s capital this week may boost heating demand.

The country’s next-day spot electricity price surged 79% on Wednesday from a week earlier, to the highest level for any February, according to data compiled by the Japan Electric Power Exchange.

Japan’s meteorological agency said Tokyo and its surrounding regions could see snow and rain on Thursday and Friday. Disruptions are already expected, as airlines operator ANA Holdings Inc. said 96 flights arriving and departing from Tokyo’s Haneda airport have been canceled. 

The forecast comes after Tokyo was hit with snow flurries last month, forcing dozens of flight cancellations and putting pressure on the power grid. 

The country has been taking measures to ensure sufficient fuel for the winter months. Still, colder temperatures have been draining Japan’s LNG supplies. Inventories held by the country’s power companies was at 1.63 million tons on Feb. 6, the lowest this season and below the 4-year average for the month of February, according to the trade ministry data. 

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