JAPANESE ENERGY DEREGULATION

Japan deregulated it’s 150 billion dollar electricity market in April of 2016 and it was the largest energy deregulation in the history of Japan. There are two main reasons this will bring opportunity to the Japanese economy.

The Japanese electricity markets have been monopolized for decades and this liberalization of the market will bring new competition. Competition typically does multiple things including improving customer service, the price of the electricity lowers and new money and innovation comes into the market to improve the stability of the electricity grid.

Electric markets are divided into three areas: generation, delivery or transmission and retail. When an energy market deregulates or liberalizes, the first sector to compete is the retailing of the electricity. Ambit Energy is the world’s largest direct seller of electricity and came into the Japanese Electricity market in early 2017.

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