Chubu Electric mulling paying users for power consumption cuts.

NAGOYA, May 13 Kyodo

Chubu Electric Power Co., which serves a major industrial area in central Japan, is considering introducing a power-saving program on a trial basis this summer under which the company would pay users for achieving a certain level of reduction in power consumption, sources familiar with the matter said Sunday.

The so-called negawatt program is aimed at encouraging small-lot users such as retail shops to switch off more electricity and help reduce power use during peak demand hours, they said.

For large-lot users, Chubu Electric will consider asking them to operate on weekends and take holidays on weekdays instead, while encouraging expansion of in-house power generation facilities.

The government is considering requesting users in regions served by some power companies including Chubu Electric to cut electricity use by around 5 percent this summer and having those utilities provide surplus power to Kansai Electric Power Co., which is facing the most serious capacity shortfall among Japan's major power companies.

Tokyo Electric Power Co. also plans to offer a similar program on a trial basis this summer.