Japan Power Prices Extend Rally Amid Scramble to Dodge Shortages

  • Suppliers in Tokyo and Kansai regions asked to lift generation
  • Tepco to receive supplies from firms with private generation
Photographer: Takaaki Iwabu/Bloomberg
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Japan spot power prices extended a historic rally rising to a record for a sixth straight session Thursday as officials for the first time ordered generators to boost output to maximum capacity to avert a shortage.

The mandate from the grid operator is one of the strongest steps to secure the nation’s electricity supplies since the 2011 Fukushima disaster that crippled Japan’s nuclear fleet. A cold blast sweeping across North Asia along with dwindling liquefied natural gas stockpiles has resulted in a power supply crunch across the region.