Due to the severe supply and demand of electricity due to the influence of the cold, the wholesale price of electricity may rise sharply, and the electricity price of retailers called "new electricity" may rise significantly. We have decided to set an upper limit on the charges for procuring additional electricity from the electric power company.
The aim is to stabilize prices in the wholesale market and reduce the impact on users.
Due to the recent cold weather, the supply and demand of electricity has been severe due to the increase in the use of heating, and the wholesale price of electricity has been on average for one day this month, which is about one time compared to last month. The price has increased 25 times.
Most new entrants, called "new electricity," source electricity from the wholesale market, so higher wholesale prices can significantly increase the electricity bills paid by customers.
For this reason, the Ministry of Economy, Trade and Industry has set an upper limit on the amount of electricity that "new electric power" operators will pay when procuring additional electricity from major electric power companies.
The upper limit is 200 yen per kilowatt hour, which aims to stabilize the price in the wholesale market and reduce the impact on users.
Minister of Economy, Trade and Industry Kajiyama said at a press conference on the 15th, "Depending on the contract, it will affect consumers, so we will continue to consider measures. Electricity while living as usual, such as using heating. I would like you to continue to use the product efficiently. "
How did you introduce the upper limit?
Home electricity retailing was liberalized five years ago in April 2016.
As a result, businesses called "new electric power" have entered the market one after another, and there are now about 700 companies nationwide.
Most of the "new electricity" is procured through the wholesale market, but the price is soaring due to the deterioration of supply and demand due to the recent cold weather.
On the 13th of this month, the average daily price rose to 154.57 yen per kilowatt hour, about 25 times higher than last month.
Some of the "new electricity" companies offer electricity rate plans linked to wholesale prices, which may significantly increase the electricity rate paid by customers.
For this reason, the Ministry of Economy, Trade and Industry has decided on new support measures.
When "new electric power" cannot procure electric power that meets the demand in the market, it procures insufficient electric power by paying a higher price than the market, "imbalance fee", to a major electric power company.
The Ministry of Economy, Trade and Industry has decided to set an upper limit of 200 yen per kilowatt hour for this "imbalance fee".
As a result, "new electricity" can be procured from major electric power companies for less than 200 yen per kilowatt hour even if there is a shortage of electricity, so the wholesale market price can be expected to stabilize.
The Ministry of Economy, Trade and Industry originally planned to introduce this system from April next year, but in response to this situation, it decided to introduce it ahead of schedule.