The Tokyo Metropolitan Government wants to terminate in March the contract under which it sells electricity generated through its power facilities to Tokyo Electric Power Co., sources said Friday.
The metropolitan government wants instead to arrange a competitive tender so it can sell its power to the highest bidder and invigorate the electricity market by allowing new entrants.
Tokyo says it sold power produced by its three hydroelectric plants to Tepco for around ¥1 billion in fiscal 2011.
Gov. Shintaro Ishihara said in April that he wanted to change the current system so Tokyo could sell the electricity to other firms.
His team intends to submit a draft plan to the metropolitan assembly in September, the sources said.
The contract with Tepco is valid until 2019, but the metropolitan government maintains that it would not have to pay any compensation to the utility if it cancels the contract.
Tepco has confirmed that the government wants out of the contract, but the utility intends to keep it intact until the expiration date.
Kyushu power glitch
Kyushu Electric Power Co. said Friday the No. 5 unit at its Shin-Kokura thermal power plant in Kitakyushu has come to a stop due to an unspecified problem.
The utility, which mainly serves Kyushu, said it was looking into the cause.