Three months after December's general election returned the Liberal Democratic Party to power under Prime Minister Shinzo Abe, the electric power industry appears set to regain its old political clout, much of which was curtailed during the three-year rule of the Democratic Party of Japan.
On Feb. 8, an expert panel of the Ministry of Economy, Trade and Industry, tasked with reforming the power industry, adopted an official report that, among other things, called for (1) separating the generation and distribution of electricity, both of which are now in the hands of the country's 10 major power companies, and (2) liberalizing the retail sale of electricity.
The committee report strongly reflects the wishes of the power companies. The power generation and distribution will be separated five to seven years from now and the target date for liberalizing electricity sales is three years from now.