The Japanese government has for the first time called on households and businesses in western Japan to cut back on electricity usage, as fears grow over the adverse impact on the economy of the nation's spreading power crunch.

The government Wednesday asked for a reduction in power consumption of at least 10% from last year's levels for the peak demand period between July 25 and Sept. 22 in the service area of Kansai Electric Power Co. (9503.TO), the nation's second-largest utility, which provides power to the Osaka region.

The move follows a program for a 15% reduction in energy use in eastern Japan that was the result of the Fukushima Daiichi nuclear plant accident.

Earlier Wednesday, one of the Bank of Japan's deputy governors underlined concerns over the spreading power shortages, suggesting that it could lead manufacturers to relocate their operations overseas.

"Uncertainty has increased over the longer-term electricity supply," said Bank of Japan Deputy Gov. Hirohide Yamaguchi.

Following the crisis at the Daiichi plant, nuclear reactors that were shut for regular maintenance have remained idled due to public concerns over their safety, with major supply implications for utilities located far away from the earthquake-hit areas, such as Kansai Electric, which relies on nuclear power for half its output.

Osaka Governor Toru Hashimoto, a frequent critic of Kansai Electric, said at a press conference Wednesday that both the government and the utility have "a poor grasp" of the situation and questioned the reliability of the company's data.

"When I first proposed a power consumption cut to Kansai Electric, the company told me it was unnecessary," he said.

The power cutbacks have been hurting Japanese industry, which was hoping to make up for lost production in quake-devastated eastern Japan by increasing output in the west of the country.

The power shortages could worsen further, as more nuclear reactors go offline for regular maintenance. In the worst-case scenario, all of the nation's 54 reactors could be idled by next May.

The government request follows a string of unexpected plant shutdowns. On Saturday, a reactor at Kansai Electric's Oi nuclear plant was shut down due to a glitch in its emergency cooling system. This was followed by the closure of a thermal power plant run by Chugoku Electric Power Co. (9504.TO) in nearby Shimane Prefecture on Monday.

The government projects this summer's supply shortage at 6.2% in Kansai Electric's service area, and 1.2% in the whole of western Japan .

The government stopped short of making its latest request mandatory, unlike in eastern Japan where large power users face fines if they refuse to comply.

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