Lifting Designations for Former Deemed General Gas Retailers and Their Former Supply Areas

1. Upon the full liberalization of the gas retail business in April 2017, from the perspective of protecting consumer interests, certain areas in which fair competition had not been sufficiently secured between former deemed general gas retailers and other gas retailers or alternative fuel providers were designated as designated former supply areas. Under this designation (based on the provisions of Article 22, Paragraph 6 of the Supplementary Provisions of the Amendment Act), transitional rate regulations were imposed on the former deemed general gas retailers within those areas. Furthermore, the designation is to be lifted when it is recognized that the grounds for the designation no longer exist.
2. Regarding the competitive status in the former designated supply areas, METI received a report based on the Gas-Related Reporting Regulations (Order of the METI No. 16 of 2017) from the provider subject to the transitional rate regulations (Toho Gas Co., Ltd.). The contents of the report were discussed by the Next-Generation Electricity and Gas Business Infrastructure Subcommittee and Gas Business Environment Improvement Working Group. Furthermore, following a public comment period (from Friday, January 23, to Saturday, February 21, 2026), METI confirmed that competition with alternative fuels and other gas retailers has advanced, that the market share in sales volume of other gas retailers has increased, and that these other gas retailers possess sufficient surplus supply capacity.
3. As a result of deliberations that also took into account the opinions of the Electricity and Gas Market Surveillance Commission, it was determined that the grounds for designation no longer exist. Consequently, the designation of Toho Gas Co., Ltd.’s designated former supply areas will be lifted, effective Thursday, October 1, 2026. (Lifting of designation based on the provisions of Article 22, Paragraph 2 of the Supplementary Provisions of the Amendment Act)

Division in Charge

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