Japan has taken the first step in its power industry shake-up with by establishing a nationwide grid management body on Wednesday, following the 2011 earthquake and tsunami that exposed the vulnerability of the nation's power system and pushed up electricity prices.
The entity, called the Organization for Cross-regional Coordination of Transmission Operators, aims to coordinate power supply with demand across the country and help ensure the electricity supply remains stable in the event of emergencies.
The government of Prime Minister Shinzo Abe is pushing for a three-stage reform of the power industry through 2020, as part of his growth strategy. The centerpiece of the plan is the full liberalization in April next year of the retail electricity market, which has been largely dominated by regional monopolies over the past 60 years.