Japan Firms Suspend New Power Contracts For Businesses Amid Energy Pressures

(MENAFN- Gulf Times) Several Japanese energy companies have temporarily suspended new electricity supply contracts for corporate clients as they grapple with global energy market pressures linked to escalating tensions in the Middle East.

According to Japan's Kyodo News Agency, Tokyo Gas has halted the acceptance of new contracts to supply electricity to factories and commercial facilities since March 6, citing a sharp rise in fuel costs, particularly liquefied natural gas (LNG), used in power generation.

The company said the move is part of an ongoing assessment of market conditions, without specifying when it may resume accepting new contracts.

Separately, ENEOS Holdings, a major oil wholesaler in Japan, announced it had also suspended new power supply contracts for businesses starting March 18, attributing the decision to its sales strategy amid volatile market conditions.

Both Tokyo Gas and ENEOS confirmed they will continue to accept new contracts for residential electricity supply.

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