Wheeling and dealing: reforming electricity markets in Japan

[Extract] The postwar structure of electricity markets in Japan, characterised by private monopolies and state regulation has prevented any significant competition from emerging in those markets. It has done so through a regulatory system that has served to reinforce existing monopolies. Alternative suppliers, with the exception of some limited generation by industry, were prevented from entering electricity markets. These suppliers were furthermore constrained in their supply operations as they could not engage in wheeling and dealing (supply to non-utility consumers) because private monopolies controlled transmission lines. With the exception of some consumption by power companies, consumers were generally prevented from purchasing electricity from non-utility entities. Any non-utility supply and consumption which occurred was heavily regulated and only took place in peripheral markets