(1) PURPOSE OF THE LAW AND SYSTEM
The purpose of this law shall be to protect the benefits of consumers of electricity and to contrive sound development of the electric utility supply business by rendering its management equitable as well as rational and also to secure public safety and to contribute to environmental preservation by regulating its work of installing, constructing, maintaining and operating its electrical facilities.
(2) OUTLINE OF THE LAW AND SYSTEM
The Law prescribes permission for undertaking electric utility supply business (Article 3), duty to supply (Article 18), conformity with technical standards of electrical facilities (Articles 39 to 41), provisions concerning the safety (Article 42) and provisions concerning environmental impact assessment of electrical facilities for business use (Article 46-2 to 46-22), plans for construction work and inspections of electrical facilities for business use (Articles 47 to 55) and so on.
(3) CABINET ORDER AND MINISTERIAL ORDINANCES
Enforcement Order of the Electricity Utilities Industry Law
Enforcement Regulations of the Electricity Utilities Industry Law
(4) OUTLINE OF THE CONTROL
i Business regulation
Regarding commencement, change and suspension of electricity (public power supply, wholesale of electricity, and specified electricity operation), permission or notification are required (Articles 3, 7, 8, 10, etc.)
ii Safety regulation
Any electrical facilities for business use of more than a certain scale shall submit the plan for construction and conduct the self-inspection before use. At the same time, it shall pass inspections such as pre-operation inspection, welding inspection and periodic inspections conducted by the Minister of Economy, Trade and Industry or a person designated by the Minister of Economy, Trade and Industry (Articles 47 to 55).
Ministry of Economy, Trade and Industry accepts submission via inernet thrgouth the system called "ITEM2000".
http://www.meti.go.jp/application/ONESTOP/3390170/index.html
(5) HIGHLIGHTS OF THE RECENT AMENDMENT
1. Business regulation
The recent amendment in June 2003 introduced enhancement of transparency in the area of transmission and distribution of electricity, facilitation of large-area distribution, enlargement of deregulated coverage, etc. (entered into force in 2005 and 2006)
i) impartiality and transparency in transmission and distribution of electricity
From the standpoint to ensure the fair competition among operators to utilize the transmission and distribution sectors, the law provided establishment of a natural agency to supervise implementation of transmission and distribution sector and separation of account of transmission and distribution sector from other sectors within electricity companies.
ii) facilitation of broad area distribution
In order to facilitate effective use of the generating capacity of power plants located throughout Japan, "pancake problem" or the system to charge fee for cross border transmission was solved.
iii) promotion of distributed source
When electricity is supplied to demanders subject to liberalization, own transmission can be used.
iv) National wide private/voluntary market to exchange wholesale electricity would be established.
v) Enlargement of liberalization scope
Scope of liberalization would be enlarged to over 500kw in April 2004, over 50kw in April 2005.
2. Safety regulation
Based on "Reform Implementation Plan of Involvement by Administration to the Public Interest Corporations", the amendment in June 2003 reviewed administration and operation including inspection and testing by public interest corporations accredited by the government. In particular, the system in which the Minister of Economic, Trade and Industry registers entities to administrate/operate is introduced instead of the previous system in which the Minister assign or approve (entered into force in March 2004).
(6) REFERENCE INFORMATION
(Liaison Office for Further Information)
(Business regulation)
Electricity Market Division, Electricity and Gas Industry Department
Tel: 03-3501-1748 http://www.enecho.meti.go.jp/english/index.htm
(Safety regulation)
Electric Power Facilities Division, Public Utilities Department
Agency of Nuclear and Industrial Safety
Tel: 03-3501-1742 http://www.nisa.meti.go.jp