Japan's average electricity price nationwide surged over 25% this Monday from last week, reaching $0.19 per kilowatt-hour (approximately 31.15 yen), according to Bloomberg, citing data from the Japan Electric Power Exchange. This price hike is primarily driven by the dual pressures of soaring spot prices for December-delivery liquefied natural gas (LNG) in Asia, which hit their highest level since December 2022 at $29.30 per million British thermal units, and continuously rising coal costs. Geopolitical tensions in the Middle East have restricted the number of LNG carriers passing through the Strait of Hormuz, while European winter heating demand has further pushed up Asian LNG prices. Japan's previous attempts to substitute natural gas with coal for power generation to mitigate costs were thwarted as coal prices also rose by approximately 30% due to concentrated Asian demand and reduced supply from Indonesia, leading to a comprehensive pass-through of energy cost pressures downstream.