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Japan Power Prices Jump as Temperatures Rise

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Electricity prices in Japan surged as extreme heat increased demand for cooling, with day-ahead spot prices rising to 21.57 Japanese yen ($0.13) per kilowatt-hour on Monday from around 14 yen/kWh at the start of the month, according to data from Japan Electric Power Exchange.

Inland regions are expected to experience "dangerous" temperatures, potentially reaching 40 degrees Celsius mid-week at Tokai, the highest this year, Weathernews said. Nagoya is also likely to experience 39 degrees Celsius heat for four consecutive days beginning tomorrow.

Elevated temperatures are expected to persist during the day and at night, requiring precautions against heatstroke such as the use of air conditioning, according to the weather forecaster.

The Japan Meteorological Agency issued an early warning for "very high" temperatures nationwide through the end of July.

Aside from weather-related upsides, higher liquefied natural gas prices following intensified attacks between the US and Iran are also lifting power prices in Japan, Bloomberg said.

Last week, spot electricity prices in the country have touched the 20 yen/kWh mark, indicating a recent surge in power prices.

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