Eastern wholesale prices in Japan's electricity markets sagged back in the week ending December 6 with the loosening demand and supply balance derived from warm and clear weather conditions, meanwhile western prices remained firm under buttermilk skies and lower temperatures compared to Tokyo. Based on the Rim Power Index (Day ahead 24 hours), the weekday power prices in the eastern market, including Hokkaido, Tohoku and Tokyo area, averaged out at 9.29 yen per kilowatt hour (kWh), down 3.14 yen/kWh or 25.3% from the previous week, meanwhile prices in the western, made up of Chubu, Hokuriku, Kansai, Chugoku, Shikoku and Kyushu area, at 8.39 yen/kWh, up 0.52 yen/kWh, or 6.6%.

The premium of Hokkaido versus Tokyo broadened to 1.06 yen from the prior week's 0.36 yen/kWh, with Hokkaido's average 10.27 yen/kWh (prior week's ave:12.82 yen) and Tokyo's 9.21 yen/kWh (12.47 yen), which are calculated from data compiled by the Japan Electric Power Exchange. Tokyo's daily maximum temperatures were projected on a day ahead basis at 15 to 19 degrees Celsius for Nov 2 to 5 although Nov 6's was expected at 11 deg C. The higher-than average temperatures curtailed electricity demand for heating. Many photovoltaic stations in the Tokyo area could press the gas pedal to the floor for Nov 2 to 5 under favorable weathers, providing downward pressures on the market.

Osaka and Nagoya's daily high temperatures were projected at levels below Tokyo's for most days of the week. Forecast high temperatures in Osaka were at 18 deg C for Nov 2, at 12 deg C for Nov 3, 14 deg C for Nov 4, 13 deg C for Nov 5, and 10 deg C for Nov 6. And, unlike Tokyo, western Japan's skies were often covered with clouds. The difference between the western average and Kyushu's shrunk to 0.10 yen/kWh compared with previous week's 0.43 yen/kWh, with western's 8.39 yen/kWh and Kyushu's 8.29 yen/kWh. Shikoku area, however, experienced some 0.01yen units for delivery on Dec 3 and 5 on the JEPX. Western power producers appeared to throttle back their power generators, including thermal and so on, to avoid a steep drop in prices. Nighttime prices in western markets moved on a firm tone to delivery on Nov 3 to 6 afforded collateral evidence.

On the Japan Electric Power Exchange (JEPX), the weekday average of System Price (Day ahead 24 hours), which are computed based on the data of 9 areas, slid by 0.30 yen/kWh or 3.3% to 8.82 yen/kWh, with the average volume growing by 51,488 megawatt per hour (MWh) or 6.2% to 888,202 MWh.

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