EARLY-STAGE EVALUATION AND FEATURES OF JAPANESE ELECTRICITY MARKET DESIGN CONSISTENT WITH ENERGY SECURITY AND GLOBAL ENVIRONMENTAL PROTECTION

摘要

One feature of Japanese electricity regulatory reform is the step-by-step reform process. There were three phases of reform from 1995 to 2005. Phase 1 of Japanese electricity sector reform began in 1995 with the introduction of wholesale competition through an IPP bidding scheme. In 2000, phase 2 of the reform began with the introduction of partial retail competition via a new entrant, the Power Producer and Supplier (PPS) scheme. Presently, under phase 3 of electricity sector reform, 63% of the energy sales market has became eligible for liberalization. In addition, the Japanese Electric Power Exchange (JEPX) and a neutral body, the "Electric Power System Council of Japan (ESCJ)", started operating in 2005. The main objective of electricity liberalization in Japan is to lower electricity rates to almost the same level as those in other OECD countries. From our observations thus far, it seems that the tariff level has been approaching that target. Japanese market design places emphasis on competitive effectiveness consistent with energy security and global environmental protection under our inherent geographic constraints. The designed market model is different from the legal and/or structural "unbundling model", and thus the vertical integration of incumbent electric utilities is preserved. This paper briefly describes the features and the initial evaluation of Japanese electricity sector reform.