Japan to map out guidelines on electricity retailing

Feb 28, 2002 01:00 AM

Japan's Ministry of Economy, Trade and Industry is planning to map out guidelines on electricity retailing by May to facilitate new entries into the industry, ministry officials said.
The ministry decided to map out the guidelines jointly with the Fair Trade Commission as there have been some cases in which electric utilities apparently blocked new entrants into the industry after the government partially liberalized electricity retailing in March 2000, the officials said.

The guidelines will clarify rules in cases where an electric utility and a newcomer jointly supply electricity to the same user, in order to prevent disputes between the two parties. The guidelines will also make it clear that electric utilities will be violating the Antimonopoly Law if they demand unfairly high compensation from users for breaking contracts to sign up with new entrants.
In a bid to enhance competition, the guidelines will state that the Antimonopoly Law will be violated if electric utilities make an agreement among themselves not to expand into each others' operating regions.

Source: Jiji Press
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