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Electricity Pricing in Japan: Key Legal Considerations for Retail Suppliers
Key Words: Japan Electricity Retail Market, Electricity Pricing, Retail Electricity Business, Electricity Business Act, Retail Guidelines, Electricity Tariffs, Market-Linked Pricing, Fuel Cost Adjustment, Pricing Transparency, Consumer Protection, Energy Regulation Japan
I. Introduction
Nearly ten years have passed since the full liberalization of Japan’s electricity retail market in April 2016. As of March 2026, the number of registered retail electricity suppliers exceeds 800.[1] As all customers (including households and commercial users) are now free to choose their electricity provider and pricing plans, tariff structures have become increasingly diverse. At the same time, the methods for calculating electricity charges and the manner in which such pricing is explained to customers have become more important than ever.
In Japan, under the principle of freedom of contract, the terms and conditions of electricity supply agreements between retail electricity suppliers and customers may, in principle, be freely determined based on mutual agreement. Accordingly, electricity tariffs may also generally be set freely based on such agreement.
However, certain regulatory safeguards apply in Japan from a consumer protection perspective. In particular, the Electricity Business Act and the “Guidelines Concerning Retail Electricity Business”[2] issued by the Ministry of Economy, Trade and Industry (the “Retail Guidelines”) establish certain rules regarding tariff setting and the manner in which pricing is explained.
This article outlines key points that retail electricity suppliers should consider when designing electricity pricing plans.[3]
To continue reading, please download the full article in PDF format below.
[1] List of Registered Retail Electricity Suppliers (Agency for Natural Resources and Energy)
https://www.enecho.meti.go.jp/category/electricity_and_gas/electric/summary/retailers_list
[2] https://www.meti.go.jp/press/2024/03/20250331007/20250331007-1.pdf
[3] This article is intended for general informational purposes only and does not constitute legal advice with respect to any specific situation. It does not address the legality or appropriateness of any particular pricing plan.