The Electricity and Gas Market Surveillance Commission Business Improvement Recommendations Issued to TEPCO Energy Partner, Inc.
The Ministry of Economy, Trade and Industry (METI) hereby announces that on November 17, 2016, the Electricity and Gas Market Surveillance Commission (EGC) issued Business Improvement Recommendations to TEPCO Energy Partner, Inc., an electricity retailer (hereinafter referred to as “TEPCO EP”), under the provisions of Article 66 (11) (i) of the Electricity Business Act.
From April 1 to August 31, 2016, TEPCO EP tendered a bid to sell electricity at a higher price, internally referred to as the “threshold value,” in the spot market operated by Japan Electricity Power Exchange (JEPX). The value represented a significant deviation from TEPCO EP’s marginal cost. Concerning this practice, the EGC determined that it falls under the activities stipulated in Part 2, II, 2, (3), b, [iii] (see the section titled “Market Manipulation”) of the Guidelines for Proper Electric Power Trade, released on March 7, 2016, namely, “[businesses] executing a trade that may cause a significant impact on market exchange rates for the purpose of changing such rates.” Based on this determination, on November 17, 2016, the EGC issued Business Improvement Recommendations to TEPCO EP as shown in Item 2 below.
2. Details of the recommendations
- TEPCO EP should not hereafter set a sales bid price using the threshold value.
- TEPCO EP should raise awareness of Item 1) among its employees and also should develop internal necessary and appropriate systems to observe Item 1).
- TEPCO EP should report concrete measures that it has taken for achieving Item 2) to the EGC by December 16, 2016.
November 17, 2016
Division in Charge
Market Surveillance Division &Wholesale Market Surveillance Office, Executive Bureau, Electricity and Gas Market Surveillance Commission