The Japan Fair Trade Commission and the Ministry of Economy, Trade and Industry (METI) revised and announced the “Guidelines for Proper Electric Power Trade” on March 31, 2009.

1. In December 1999, the Japan Fair Trade Commission and METI formulated the “Guidelines for Proper Electric Power Trade,” which describe practices that may pose problems under the Antimonopoly Act or the Electricity Utilities Industry Law from the standpoint of fair and effective competition in the electric power market. The guidelines have been revised three times since then in view of examples of applications of the relevant laws.

The Japan Fair Trade Commission and METI jointly revised the guidelines for the fourth time and today announced the revision. The revision was made in light of proposals made by the Electricity Industry Committee of the Advisory Committee for Natural Resources and Energy from the viewpoint of improving the competitive environment in the electric power market. These proposals were presented in reports compiled as a result of the Committee’s discussions on the fourth electricity utilities system reform (“Fundamental Report” in March 2008 and “Report on the Detailed System” in July 2008). Before finalization, the revision was reviewed by the Fair Trade WG of the Committee.

2. During the development of the revision, its draft was released on February 24 to invite opinions from a wide range of parties concerned.

3. The Japan Fair Trade Commission and METI will continue to work toward ensuring fair and effective competition in the electric power market, as well as to take strict and prompt measures against violations of the Antimonopoly Act and make efforts to prevent such acts. METI will continue to take appropriate and prompt measures against practices that are problematic under the Electricity Utilities Industry Law and strive to improve the competitive environment in the electric power market.

The authorities will carefully monitor the situation so that fair and effective competition can be steadily ensured in the electric power market and will check that the guidelines are appropriate and necessary in order to meet changes in the competitive environment.

March 31, 2009

Electricity Market Division, Electricity and Gas Industry Department, Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry