Cabinet Decision on the Bill for the Act for Partially Amending the Electricity Business Act

1. Purpose of the bill

International energy circumstances are changing due to Russia’s aggression against Ukraine and soaring tensions in the Middle East, and yet domestic electricity demand is expected to increase due to the progress of Digital Transformation (DX) and Green Transformation (GX).

Amid this situation, in order to ensure a stable supply of electricity and promote energy security, measures will be taken to secure supply capacity by, for example, promoting the development of large-scale intra-regional and inter-regional transmission lines and large-scale power sources; to establish an environment for the stable and sustainable development of the electricity business; and to enhance the safety of photovoltaic power generation facilities and other equipment.

2. Outline of the bill

(1) Promotion of the development of large-scale transmission lines and large-scale power sources

1. The Minister of Economy, Trade and Industry will certify development plans for intra-regional transmission lines and related facilities submitted by general electricity transmission and distribution utilities, etc., as well as development plans for large-scale power sources submitted by large-scale electricity generation utilities. The Organization for Cross-regional Coordination of Transmission Operators, JAPAN (OCCTO)* will provide loans for the funds necessary for such development by utilizing the Fiscal Investment and Loan Program (FILP) and other financing means.
   * OCCTO is an authorized corporation that monitors the electricity supply-demand situation and promotes securing supply capacity in order to facilitate the cross-regional operation of the electricity business.
2. The sources of loans provided by OCCTO to general electricity transmission and distribution utilities, etc., for the funds necessary for development based on certified plans for inter-regional transmission lines and other facilities will be expanded, enabling the utilization of FILP and other financing methods.
3. Funds generated through cross-regional electricity trading (congestion revenues*) will be paid into the national treasury and utilized, through subsidies to OCCTO, for the development of inter-regional and intra-regional transmission lines.
   * Congestion revenues refer to price differences that arise when electricity is traded between different supply areas, such as Hokkaido and Tokyo, on a wholesale electricity exchange.
4. When large-scale electricity generation utilities suspend or decommission large-scale power sources, they will be required to conduct prior consultations with general electricity transmission and distribution utilities, etc.

(2) Establishment of an environment ensuring the stable and sustainable development of the electricity business

1. In order to ensure the sound operation of electricity retail, suspension of business for a certain period and other new grounds for the rescission of registration of electricity retailers will be added to the current list of conditions.
2. In order to promote electricity trading, in addition to the existing day-ahead market, the Minister of Economy, Trade and Industry will be able to designate and supervise wholesale electricity exchanges that establish mid- to long-term markets and supply-demand adjustment markets, which are expected to become increasingly important from the perspective of ensuring a stable supply.

(3) Enhancement of the safety of photovoltaic power generation facilities and other electrical facilities

1. In order to prevent accidents caused by design deficiencies in photovoltaic power generation facilities, their support structures and other components will be subject to pre-construction conformity verifications against technical standards conducted by third-party organizations (registered conformity verification organizations).
2. In cases where it is difficult for facility operators alone to identify causes and prevent recurrence of issues such as incidents arising from product defects or construction defects, measures will be established to require necessary cooperation from manufacturers, importers and distributors and construction contractors.

Related Materials （in Japanese）

• Summary of the bill for the Act(PDF:372KB)
• Outline of the bill for the Act(PDF:135KB)
• Bill for the Act and the reason therefor(PDF:280KB)
• Comparison of the prior and revised provisions(PDF:230KB)
• Referential provisions(PDF:1,228KB)

Divisions in Charge

• Regarding the entire Bill: Policy Planning Division, Energy Efficiency and Renewable Energy Department, Agency for Natural Resources and Energy

• Regarding Section 2(3) Enhancement of the safety of photovoltaic power generation facilities and other equipment: Electric Power Safety Division, Industrial and Product Safety Policy Group