The government has decided to spend about ¥650 billion from its fiscal 2026 reserve fund on electricity and gas subsidies for usage from December through February, the Mainichi Shimbun reported, a route that avoids a fresh budget debate.
The Cabinet is expected to approve the spending on Friday.
The money comes from a reserve set aside for responding to situations such as Middle East instability. About ¥520 billion will go to the electricity and gas subsidies. A further ¥130 billion will go to a grant for regional revitalization that covers LP gas subsidies and other support.
The reserve will fall to about ¥85 billion after the outlay.
How the discount works
Electricity subsidies will be ¥1 per kilowatt-hour in December and ¥4.5 per kilowatt-hour in January and February. Combined with the gas subsidy, a standard household is expected to save about ¥7,000 over the three months.