Ministry of Economy, Trade and Industry
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Agency for Natural Resources and EnergyCabinet Decision on the Policy on Electricity System Reform

On April 2, 2013, the Cabinet decided to approve the Policy on Electricity System Reform, which provides a reform policy aiming at the ensured implementation of electricity system reform by uniting the efforts of the Government of Japan.

1. Background of the study on the electricity system reform

Concerning the electricity system reform, the Expert Subcommittee on the Electricity Systems Reform compiled a report* on February 8, 2013. Based on the report, the Government of Japan formulated the Policy on Electricity System Reform.

2. Purpose and steps of the reform

The electricity system reform aims to achieve three purposes: [i] securing the stable supply of electricity, [ii] suppressing electricity rates to the maximum extent possible and [iii] expanding choices for consumers and business opportunities. To achieve these purposes, a dramatic reform will be steadily carried out according to a realistic schedule, focusing on the following three steps:

  1. Establishment of the Organization for Nationwide Coordination of Transmission Operators (tentative title) (by about 2015);
  2. Full liberalization of entry to electricity retail business (by about 2016); and
  3. Further securing neutrality of the power transmission/distribution sector and full liberalization of retail electricity rates (in about 2018-2020)

Reference:

Release Date

April 2, 2013

Division in Charge

Electricity Market Division, Electricity and Gas Industry Department, Agency for Natural Resources and Energy

 
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