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The Electricity and Gas Market Surveillance Commission Business Improvement Recommendations Issued to TEPCO Power Grid, Inc.

The Ministry of Economy, Trade and Industry (METI) hereby announces that on June 17, 2016, the Electricity and Gas Market Surveillance Commission (EGC) issued Business Improvement Recommendations to TEPCO Power Grid, Inc. (hereinafter referred to as the “TEPCO PG”) under the provisions of Article 66 (11) (i) of the Electricity Business Act.

1. Outline

Since early April 2016, TEPCO PG has been delaying the delivery of a determination notification concerning consumers’ electricity use to electricity retailers. To address this situation, METI and the EGC have requested TEPCO PG to submit a report respectively on May 20, 2016 (in the name of the METI Minister), and on June 3, 2016 (in the name of the EGC Chairman).

In response to the submission of reports and other documents by TEPCO PG y responding to the requests, on June 17, 2016, the EGC examined the reports and determined to issue Business Improvement Recommendations as shown in Item 2 below to TEPCO PG since it determined that TEPCO PG falls under the cases where [the EGC] finds it necessary to issue business improvement recommendations to secure the appropriate trade of electricity, which are stipulated in the provisions of Article 66 (11) (i) of the Electricity Business Act, based on the following facts that the EGC confirmed: [i] as many as around 20,000 end consumers of electricity have been affected by the delay, and [ii] end consumers who have shifted to new electricity retailers have been suffering from a delay in receipt of the bill for electricity rates, while electricity retailers to which such end consumers have shifted have been affected by damage to their perceived trustworthiness.

2. Details of the recommendations

  1. Concerning the delay in delivering a determination notification, TEPCO PG should formulate a specific and effective improvement plan, containing policies for addressing issues involving the relationship with electricity retailers with which TEPCO PG has concluded an agreement of electricity wheeling services and with customers of such retailers, in particular. In addition, TEPCO PG should also develop a system to achieve these goals and submit a report to the EGC by July 1, 2016, on such system and the reasons therefor.
  2. TEPCO PG should precisely carry out the plan in Item 1) above, review the plan twice a month starting at least from July 1, 2016, and report the results to the EGC within one week after the review. Moreover, the timing of ending the submission of such report will separately be noticed by the EGC.

Release date

June 17, 2016

Division in Charge

Network Surveillance Division, Executive Bureau, Electricity and Gas Market Surveillance Commission

Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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