On Monday, prices for delivery of electricity early on Tuesday morning reached 55 yen ($0.48) per kilowatt hour (kWh) the highest since late-January.

Traders said higher LNG prices were starting to filter through to the local power market.

Japanese buyers of liquefied natural gas (LNG) are scouting for cargoes to ensure they have adequate supplies of the super-chilled fuel to meet peak heating demand this winter, industry sources told Reuters late last week.

Elevated electricity prices in recent weeks are reviving memories of last winter when prices hit record highs and Japan's grid nearly failed in the worst energy crisis for the country since the Fukushima disaster.

Energy prices across the world have been hitting records or multi-year highs as economies from Europe to Asia recover from the pandemic but face lingering supply chain and other disruptions.

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