The revised law on electricity business enacted in June will end the decades-long monopoly of Japan's regional power companies by liberalizing the retail sale of power to households in 2016.
Consumers will be able to choose which power suppliers to buy from, and the government hopes the influx of new entrants to the liberalized market will pave the way for discount rates and new services. Policymakers and businesses should stick to the bottom line of the reform — to reduce the cost of electricity through greater competition in the market.
The amendment is the second phase of a three-stage reform of the nation's electricity system. The regional monopoly of major power companies have been gradually eased since 2000, with power supplies to large and medium-size industrial users already thrown open to competition.
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