Response to Full Deregulation of Retail Electricity Sales and Electricity System Reform

「Trading prices on the Japan Electric Power Exchange had remained relatively low and stable, but futures prices in the electricity trading market rose further as escalating tensions in the Middle East raised concerns about the procurement of crude oil, natural gas and other commodities.」

「In this industry, local consent was obtained for the restart of Tokyo Electric Power Company's Kashiwazaki-Kariwa Nuclear Power Station, marking the first step toward a stable supply of electricity to the Tokyo metropolitan area. Trading prices on the Japan Electric Power Exchange also remained relatively low and stable.」

「Under the Seventh Strategic Energy Plan, the policy on nuclear power generation has been changed to utilization, in view of the need to make maximum use of decarbonized power sources while seeking to increase the energy self-sufficiency rate.」

「In addition, the draft of the Seventh Strategic Energy Plan was published. In view of the need to make maximum use of decarbonized power sources to increase the energy self-sufficiency rate, the Cabinet will consider a proposal to change the policy on nuclear power generation from reduction to utilization.」

「Looking ahead, consumer burdens will increase as the subsidy program for mitigating sharp increases in electricity and gas prices ends with usage through May 2024, the renewable energy surcharge has been raised, and the capacity market begins operating. The capacity market is a system for trading future electricity supply capacity and requires retailers to bear the cost of maintaining power plants.」

「In this industry, trading prices on the Japan Electric Power Exchange remained elevated at a certain level through the end of last year, but began to decline at the start of the year and have remained subdued since early spring. Meanwhile, the electricity production costs of major power companies, formerly general electricity utilities, have remained high, and industrial electricity supply contracts with major power companies have successively shifted to market-price-linked terms. Major power companies have also applied to raise electricity rates for general consumers, but the government has requested reviews of the scale of the increases and the increases remain on hold.」

「Wholesale electricity market trading prices remained high, and electricity retailers continued to withdraw from the business. When consumers whose contracts with these retailers had been terminated sought to receive electricity from general transmission and distribution operators, they were unable to conclude standard electricity supply and demand contracts and were forced to switch to last-resort supply, the electricity market's safety net.」

「The withdrawal of electricity retailers and other developments created situations in which standard supply contracts could not be concluded for supplying electricity to consumers, accelerating the shift toward supply contracts whose prices are linked to the market.」

「In this industry, trading prices on the Japan Electric Power Exchange remained high, forcing electricity retailers that use market-based electricity to withdraw from the business.」

「In this industry, there were concerns that summer electricity supply and demand would become extremely tight because of reduced supply capacity resulting from the suspension or closure of aging thermal power plants. However, the situation did not develop into a serious problem because of the impact of the sluggish economy and the fact that nationwide extreme heat did not continue for long. Trading prices on the Japan Electric Power Exchange also remained relatively stable without surging.」

「In this industry, wholesale electricity market trading prices rose abnormally from around the middle of December last year through the latter half of January, significantly affecting new electricity retailers using market-based electricity and consumers with market-price-linked supply contracts.」

「In the wholesale electricity market, trading prices rose sharply from the end of the year, materially affecting the results of new electricity retailers using market power, while there were also concerns about the impact on consumers with supply contracts linked to market prices.」

「In this industry, the Act Partially Amending the Electricity Business Act and Other Laws to Establish a Resilient and Sustainable Electricity Supply System, known as the Energy Supply Resilience Act, was enacted in June 2020 in response to recent natural disasters. It requires transmission and distribution operators to formulate disaster-response coordination plans and systematically renew existing facilities, while the Organization for Cross-regional Coordination of Transmission Operators is required to formulate development plans for major transmission lines based on medium- to long-term grid formation.」

「The Electricity Business Act was amended in June 2015, and generation was separated from transmission and distribution from April 2020.」

「General transmission and distribution operators have begun exploring wide-area procurement from adjacent areas, while efforts are under way to use interconnection lines in their service areas more efficiently and discussions on ensuring stable electricity supplies during disasters have intensified. The Electricity Business Act was amended in June 2015, and legal separation of the generation and transmission/distribution businesses is scheduled to take place from April 2020 to further ensure the neutrality of the transmission and distribution business. The need for various reviews of its operation has become increasingly urgent.」

「Among general transmission and distribution operators, there were moves to expand business beyond their respective service areas and strengthen cooperation in technology development for decommissioning nuclear power plants, as well as initiatives addressing surplus electricity from residential solar power after the end of the purchase period. There were also no notable developments in summer electricity supply and demand or market electricity prices.」

「In the electricity retail industry, following the liberalization of entry into electricity retailing that began in 2016, competition for customers between incumbent major electricity and gas companies and new market entrants has intensified, making it increasingly difficult for new entrants to secure earnings.」

「In the electricity retail industry, following the liberalization of entry into electricity retailing that began in 2016, competition for customers between incumbent major electricity and gas companies and new market entrants has intensified, making it increasingly difficult for new entrants to secure earnings.」

「Competition with new electricity retailers has intensified through initiatives such as supplying electricity beyond the boundaries of grid regions and developing bundled electricity and gas offerings in the electricity sales business. Discussions are also under way on using available grid capacity more efficiently.」

「In this industry, competition with new electricity retailers has intensified through initiatives such as supplying electricity beyond the boundaries of grid regions and developing bundled electricity and gas offerings in the electricity sales business. Discussions are also under way on using available grid capacity more efficiently.」

「In this industry, electricity system reform has intensified competition between incumbent utilities and new electricity retailers through initiatives such as supplying electricity beyond the boundaries of grid regions and developing bundled electricity and gas offerings in the electricity sales business. Discussions are also under way on using available grid capacity more efficiently.」

「Since full liberalization of electricity retailing began in April 2016, general consumers have become increasingly interested in the use of electricity in many respects, including electricity prices and rate structures, the proportion of renewable energy in household electricity and other value-added services, and have been deepening their understanding of these issues.」