New entry in power generation and retail business

The division responsible for power transmission and distribution is cut off from major power companies nationwide, and it will start as a new company from 1st. The aim is to make the transmission and distribution network available to all companies fairly and to encourage new entrants into power generation and retail businesses.

The law that separates the power generation and retail divisions and the power transmission and distribution divisions of major power companies will be enforced for one day.

Except for TEPCO, which has already been separated, and small-scale Okinawa Electric Power, the power system reform following the liberalization of retailing has led to eight companies in Hokkaido, Tohoku, Chubu, Hokuriku, Kansai, Chugoku, Shikoku, and Kyushu. The power transmission and distribution division is spun off.

This aims to encourage new companies to enter into power generation and retail businesses by ensuring that all companies have fair access to the grid they own.

Electricity companies and new transmission and distribution companies are prohibited by law from concurrently serving as directors, and if both companies are located in the same building, they are obliged to separate rooms and restrict entry, etc. The state is to check to avoid preferential treatment. Promotion of new entrants and competition is expected to lead to lower fees and the provision of a variety of services.

On the other hand, in the case of a large-scale power outage due to a disaster, part of the restrictions are temporarily relaxed, so the entire group can respond.