The regional monopoly enjoyed by the electric power industry in Japan has come under unprecedented criticism since the March 11 earthquake and tsunami damaged the Fukushima No. 1 nuclear power station, causing radioactive leaks and creating a highly political issue of how to compensate victims.

The entire industry, especially Tokyo Electric Power Co. (Tepco), the operator of the stricken plant, is becoming increasingly scared of political initiatives aimed at reforming the present system under which each of the 10 regional utilities has a monopoly on both the generation and distribution of electricity in its respective territory.

Tensions are mounting between the government and Tepco, as the former is increasingly inclined to separate the generating and distributing sides of the utility's operations.