Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Sunday, November 8
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Utilities»Money-losing water utilities surge in number; rate hikes likely
    Utilities

    Money-losing water utilities surge in number; rate hikes likely

    April 6, 20263 Mins Read


    Nearly a quarter of Japan’s municipal water utilities operated at a loss in fiscal 2024, the highest ratio in 10 years, and rate hikes appear inevitable nationwide, an Asahi Shimbun analysis found.

    Water utilities are, in principle, designed to be self-supporting. Fees collected from households and businesses are expected to cover costs for water purification, pipe maintenance and personnel expenses.

    However, the analysis shows a growing number are “operating below cost,” meaning their fee revenue has fallen short of expenses.

    For fiscal 2024, 65.6 percent of all utilities fell into this category, a 6.7 percentage-point increase from the previous year.

    While tax subsidies from general accounts can cover some shortfalls, they are increasingly becoming insufficient.

    The funding gap means essential work is being neglected, according to Takuya Urakami, a professor of public utility studies at Kindai University.

    “Even with subsidies, they can’t secure enough funds for the maintenance and management of aging water pipes and other infrastructure,” he said.

    The Asahi Shimbun analysis, which compiled data from the ministry of internal affairs and the Digital Agency, shows a sharp deterioration in finances.

    The proportion of utilities with a current account deficit had hovered in the low 10-percent range after hitting 10.2 percent in fiscal 2017. But it jumped to 17.1 percent in fiscal 2023.

    In fiscal 2024, the ratio surged to 23.2 percent, representing 379 of the 1,632 utilities surveyed.

    The financial strain is attributed to soaring personnel and material costs, the long-term population decline trend, and the proliferation of water-saving appliances.

    According to Urakami, worsening finances prevent utilities from building up “savings” for future facility maintenance and management costs.

    This is critical, as 26 percent of the nation’s water pipes had already exceeded their 40-year legal service life as of fiscal 2024.

    Urakami said municipalities have long postponed necessary upgrades to avoid raising water rates.

    “The longer they postpone, the higher the construction costs become. To systematically implement seismic retrofitting and renewal investments, rate hikes are unavoidable,” he said.

    Those fee increases are already under way.

    While 30 to 70 utilities raised rates annually between fiscal 2015 and 2022, the number climbed to about 360 in fiscal 2023, and it has already exceeded 90 in fiscal 2024, ministry data shows.

    Urakami argues that regional consolidation of water utilities is an effective way to moderate the increases.

    “If they cooperate with neighboring municipalities, cost reductions are also possible through the consolidation of facilities and centralized management,” he said.





    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleBitcoin Price Surges on US-Iran 45-Day Ceasefire Talks, Trump’s Press Conference
    Next Article Bitcoin (BTC) Surges 3% Past $69K as Middle East Ceasefire Hopes Trigger Massive Short Liquidation

    Related Posts

    Utilities

    Should You Invest in the State Street Utilities Select Sector SPDR ETF (XLU)?

    November 5, 2026
    Utilities

    Essential Utilities (WTRG) Beats Q3 Earnings and Revenue Estimates

    November 3, 2026
    Utilities

    Utilities Down as Yields Rebound – Utilities Roundup

    November 3, 2026
    Leave A Reply Cancel Reply

    Top Posts

    How is the UK Commercial Property Market Performing?

    December 31, 2000

    How much are they in different states across the US?

    December 31, 2000

    A Guide To Becoming A Property Developer

    December 31, 2000
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Stock Market

    Nasdaq 100 and S&P 500: Stock Index Futures Rally as Oil Sell-Off Lifts Sentiment

    May 25, 2026
    Bitcoin

    SEC obtient un feu vert pour la fonction Bitcoin qu’il n’a jamais voulu auparavant! Explique le membre de la SEC!

    June 26, 2025
    Art

    London Art Exchange: Redefining the Future of Auctions Through Blockchain Transparency

    December 23, 2025
    What's Hot

    Asian shares are mostly lower, while Tokyo’s Nikkei jumps 2%

    August 7, 2025

    Bitcoin Treasury Firm MARA Considers Selling BTC Reserves After Policy Update

    March 3, 2026

    China Pacific Insurance (Group) Co. donne des prévisions de bénéfices pour l’année 2024 -Le 22 janvier 2025 à 11:14

    January 22, 2025
    Most Popular

    US Treasury Yields Rise: What a Flattening Yield Curve Means for Markets

    April 27, 2026

    China’s Economy Faces Headwinds in Real Estate As Retail Rebounds

    August 15, 2024

    Trump’s Financial Disclosures Reveal Lawsuit Debts and Cash Grabs

    August 16, 2024
    Editor's Picks

    Northern Ireland property prices rise 7.5% in 2025

    March 16, 2026

    Stock Market Today Highlight: Sensex, Nifty end flat amid caution ahead of US-Iran talk; auto, pharma, PSU banks gain

    February 26, 2026

    GBP/USD Tests Whether 1.33 Is a Base or a Breakdown Signal

    May 20, 2026
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2026 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.