Tokyo Gas to cut customers' rates

Tokyo Gas Co. said Wednesday it will lower its gas rates by an average 5.18 percent on Jan. 1 to pass on the effects of its cost-cutting measures to customers amid intensifying competition in the deregulated energy market.

Tokyo Gas President Norio Ichino said the reduction will help his company compete with firms in other energy sectors, such as electric power companies, on an equal footing.

"Our competition against electric power companies has been intensified due to deregulation in the energy sector. We have thus lowered rates to a level that is competitive enough against other energy companies," he said.

The 5.18 percent cut is almost identical to an average 5.21 percent reduction in power charges by Tokyo Electric Power Co. on Oct. 1.

The step by Tokyo Gas appears to be a counter to Tepco's reduction of charges to encourage consumers to switch from gas to electricity.