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Agency for Natural Resources and Energy Guidelines Established under the Approaches to Public Calls by General Electricity Transmission/Distribution Businesses for Procuring Other Businesses for Electricity Adjustment

The Ministry of Economy, Trade and Industry (METI) hereby announces that in light of the proposal submitted by the Electricity and Gas Market Surveillance Commission (EGC), METI has established guidelines under the Approaches to Public Calls by General Electricity Transmission/Distribution Businesses for Procuring Other Businesses for Electricity Adjustment. The guidelines stipulate the approaches to ensuring fairness and transparency in public procurement called by general electricity transmission/distribution businesses and also stipulates the desired approaches to public calls for such procurement and other methods.

The Revised Electricity Business Act, which came into force in April 2016 through the second stage of the Electricity Systems Reform, has introduced a new licensing system concerning electricity retailing business. Under the system, general electricity transmission/distribution businesses are required to control frequencies and adjust the supply-demand balance in their electricity service areas.

As for the public procurement calls for other businesses to adjust necessary electricity volumes, these general electricity transmission/distribution businesses should avoid treating specific power sources favorably and bearing excessive costs, and to this end, they are required to ensure fairness and transparency in the procedures of public calls for other businesses that will adjust necessary electricity volumes, in principle. However, preparation for the specific details of such procedures is entrusted to respective general electricity transmission/distribution businesses.

To address this situation, METI considered it important to publicize basic approaches to ensuring general electricity transmission/distribution businesses to provide appropriate procurement calls for other businesses that will adjust necessary electricity volumes, before such businesses make public procurement calls.

On September 26, 2016, METI received a proposal from the EGC for establishing guidelines under the Approaches to Public Calls by General Electricity Transmission/Distribution Businesses for Procuring Other Businesses for Electricity Adjustment, pursuant to Article 66 (13) (i) of the Electricity Business Act. In response, METI established the guidelines.

Release date

October 14, 2016

Division in Charge

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

Related Information

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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