Japan, its most ambitious attempt in the power industry reform since 1951, with Prime Minister Shinzo Abe (Shinzo Abe) ready for a battle victory, breaking the strong regional monopoly as a test, is considered his the political agenda.
The time is ripe for the Government to promote, to reduce some of the highest electricity costs in the world, through open competition in the market, with the energy companies "after the Fukushima nuclear crisis battered public image.
In Japan is rare major reforms, but Abe for the power industry a detailed plan, is the drive is central to his overhaul the country's economy, high energy costs will be derailed back to growth stagnation and deflation decades of efforts. The government is promoting the recently submitted legislation through parliament to adjourn on June 26 to enter.
Change is not easy political connection utility is part of a network of entrenched interests, to resist attempts to relax the industry since the 1990s. Companies and their affiliates have relations with politicians, their campaign funds to government officials, and often performed the role.
"(Japanese power company) is anyone, but they are good, so we must get rid of, the energy costs are so expensive," said Taro Kono, in the ruling Liberal Democratic Party legislators, who have long-term has been criticized government support utilities and said, these plans should go further.
Companies, including Tokyo Electric Power Co. and Kansai Electric Power Company, or nearly 98% of Japan's electricity supply and access to their transmission lines, so that a heavy new entrants.
After the March 2011 earthquake triggered the Fukushima disaster emphasized not the transfer of power to the region suffering from a shortage of regional monopolies to create a national grid transmission is pain control is also a key issue.
Of historic proportions
Toshimitsu Motegi, Minister of Economy, Trade and Industry Ministry to Congress in March to overhaul the core of the market, in an attempt to reduce Japan's energy costs soaring, has been pushed to a record trade deficit.
"This is a major historic reform, a fundamental review of the regional monopoly system, has been going on for six years," he said.
Monopoly, founded in 1951, after the end of World War II the United States during the occupation, to follow the American model, and control all aspects of the generation and transmission of legal sanctions earnings regional career.
Tokyo Electric Power Company before the disaster at the Fukushima Daiichi nuclear power plant facilities, is the most powerful tool is under government control, and is split into a separate unit. The company will likely be broader changes template.
"Today's Tokyo Electric Power Company Tokyo Electric Power Company said in the past is not the same as Tokyo Electric Power Company, of consulting firm Eurotechnology the Japan KK Gerhard Fasol CEO of.
Fasol said that he expects the industry to push reforms by countries unless there is a major political change, try one of the full liberalization of the electricity market in the last major industrialized economies.
State Grid
Smooth transfer of power between Japan also hindered it has two different frequencies to the east and west sides.
This should be changed in the first stage of the reform is expected to be in the next seven years. The Government submitted legislation to create the State Grid Corporation in 2015, the bill also laying the following two stages of the timetable for reforms.
I hope to pass the bill in the current session, as of June 26 may fade and held a debate with some members of Congress, according to officials involved in the drafting of legislation to the Government.
, "The official said:" We hope that the Minister Motegi to make a strong statement (Parliament began debate on legislation).
In the second phase, the government plans to open up the market, an important source of earnings for the family, the power companies.
Opened up the market to customers over 50 kilowatts in 2005, but the tool can still prevent the supply of independent power producers, because they control the transmission line.
The final and most ambitious stage to break the monopoly into separate generation and transmission companies envisaged that by 2020, the abolition of price controls.
Desalination?
Although the ultimate goal is for Japanese companies and voters, who helped draft the program's problems reform will lower the costs, lower electricity prices.
"Consumers in Europe and the United States often find that the power sector deregulated electricity prices, said:" Fujitsu Research Institute researcher Hiroshi Takahashi, and the panel on the reform proposals of the members.
Subsidies for renewable energy, environmental taxes and fuel import costs higher prices remain after deregulation in some countries, he said.
Although energy companies say they support the thrust of the proposed changes, they have repeatedly urged the Government to give priority to the stable supply of electricity, and slow down the reform, if it can not be guaranteed.
And utilities dilute the legislation may have had some success, Takahashi said.
"The METI panel recommended compared with February, the bill authority (State Grid Corporation)," he said, and looks weakened to some extent.
"Real opportunity"
Nevertheless, the buying and selling houses and other companies are interested to see the development of the situation, sensing this time around may be different.
"This is a real opportunity, I think, especially in the state of the Tokyo Electric Power Company, said:": Liu Hao, Senior Managing Executive Officer, trading company Itochu, when asked in a recent earnings conference reform.
Japanese trading company said that they are keen to enter or expand the power generation business, they have sufficient funds, and the recent release of the largest regional power monopoly of the dollar, the combined loss of $ 1.6 billion in the second year.
Nuclear reactors in Japan to perform safety checks after the Fukushima disaster, has also led to the search for alternative energy sources such as renewable energy.
Fasol said: "trading companies, and other companies, such as real estate companies, gas companies and telecommunications company Softbank has to enter the electricity market,". Is an avalanche "in a certain extent, this would be very difficult to stop now."
 
 



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