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Guidelines for Proper Electric Power Trade Revised

September 27, 2019

Joint Press Release with the Japan Fair Trade Commission

The Ministry of Economy, Trade and Industry (METI) hereby announces that on September 27, 2019, the Japan Fair Trade Commission (JFTC) and METI jointly revised the Guidelines for Proper Electric Power Trade.

Outline of the revision

In December 1999, the JFTC and METI jointly formulated and published the Guidelines for Proper Electric Power Trade, which clarify problematic trade practices and other improper behavior by businesses and other entities under the Antimonopoly Act or the Electricity Business Act from the perspective of fair and effective competition in the electricity market. Since then, the JFTC and METI have been revising the guidelines in line with revisions to related systems and in response to other related changes.

In FY2020, in line with the implementation of the legal unbundling of general electricity transmission/distribution businesses and electricity transmission businesses (hereinafter collectively referred to as “general electricity transmission/distribution businesses, etc.”), Japan will put into force the conduct regulations that restrict and control certain practices between general electricity transmission/distribution businesses, etc. and specified stakeholders thereof, such as placing restrictions on the concurrent holding of positions by a director and restrictions on subcontracting of businesses between the two sides.

METI hereby announces that the JFTC and METI jointly revised the guidelines to further clarify the operation of the laws and regulations related to the conduct regulations and announces the decision to publish the revised guidelines on September 27, 2019. For the revised guidelines, see Appendix 1, and for a comparison table of the old and new sections, see Appendix 2.

To ensure fair and effective competition in the electricity market, the JFTC and METI will endeavor to fully raise public awareness of the guidelines to contribute to preventing problematic trade practices and other improper behavior by businesses and other entities under the Antimonopoly Act or the Electricity Business Act and also will continue the appropriate operation of the Antimonopoly Act and the Electricity Business Act.

Division in Charge

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