The Ministry of Economy, Trade and Industry accepted the change notification for specific retail supply terms and conditions submitted by Hokkaido Electric Power Company on August 25, 2025, ensuring proper operation of the power market liberalization system and consumer protection. This notification holds important significance as a crucial institutional operational procedure based on the Electricity Business Act in securing power market transparency and maintaining fair competitive environments.
The specific retail supply terms and conditions are contract terms that former general electric utilities (deemed retail electric utilities) operating before power liberalization define when supplying electricity to low-voltage customers as transitional measures. These terms serve as "last resort" functions to stably secure power supply for households and small businesses that have not switched to new power companies after power liberalization.
This change notification implements revisions to specific retail rates and other measures based on changes to wheeling supply terms and conditions notified by Hokkaido Electric Power Network Company on July 30, 2025. Wheeling supply terms and conditions define contract conditions when transmission and distribution operators provide wheeling supply to retail electric utilities, requiring appropriate price pass-through procedures as their changes directly affect retail rates.
From the perspective of power rate systems, ensuring mechanisms where various cost components including fuel cost adjustment systems, renewable energy generation promotion surcharges, and wheeling charges are appropriately reflected in electricity rates is crucial. Particularly amid rising power generation costs due to fuel price increases, yen depreciation, and carbon neutrality response investments, rate settings that balance consumer burden appropriateness with utility management stability are required.
From consumer protection perspectives, important policy issues include adequate advance notification of electricity rate changes, provision of understandable rate structures, and consideration measures for low-income households. Additionally, as selectable rate menus diversify with the advancement of retail power liberalization, enhanced information provision to enable consumers to make appropriate choices is demanded.
Through acceptance of this notification, stable power supply security in Hokkaido region, maintenance of appropriate rate levels, and healthy development of the power liberalization system are expected, positioned as important institutional operations toward Japan's energy policy and carbon neutrality goal achievement.