09-05-01 Japan's power industry needs a strong independent regulator in order to become truly competitive, an Enron Japan official said. "Japan is in a new global environment now. It requires new structures for its economy," said Nicholas J. O'Day, vice president at Enron Japan, a wholly-owned subsidiary of the Houston-based Enron.
While he said that the existing Ministry of Economy, Trade and Industry might rise to fill the role, he expressed concerns that the ministry would be able to serve an impartial role given the historical relationship between it and the incumbent utilities. That relationship might make it difficult for the ministry to objectively treat new entrants to the power field, he said.

Launched in April 2000, Enron Japan is focusing its business on areas such as electricity trading and marketing, and trading in weather derivatives, nonferrous metals and financial products. It has also said it plans to introduce broadband services in Japan. "Contrary to popular belief, Enron is not out to destroy the existing Japan utilities," O'Day said. Rather, he said, Enron maintains that increased liquidity is a vital factor to bring about a competitive environment.
Enron is basing its conclusions on a report by US-based Brattle Group, O'Day said. The consultancy was commissioned by Enron to assess the state of Japan's power industry and make suggestions for reform. The Brattle report will be released May 15 at an Enron co-sponsored seminar in Tokyo called, "Reassessing Power Deregulation."