Japan's upper house passed legislation on Wednesday to start the most ambitious reform of its electricity sector since 1951, a process prompted by the Fukushima nuclear crisis that may end with the break-up of powerful regional monopolies.
The reforms, including the establishment of a national grid and the liberalization of the power market for homes, are central to Prime Minister Shinzo Abe's drive to overhaul the economy, as high energy costs threaten to derail efforts to reverse decades of stagnation.
Regional monopolies, including Tokyo Electric Power Co and Kansai Electric Power Co, supply almost 98 percent of Japan's electricity and terms for access to their transmission lines make it onerous for new entrants.
Wrenching control of transmission from the monopolies to create a national grid became a big issue after the March 2011 earthquake and tsunami that sparked the Fukushima disaster and highlighted an inability to transfer power to areas suffering shortages.
The power law was passed by Japan's lower house earlier this month and sailed through the upper house with 202 votes in favor and 29 against, a parliamentary official said by phone.
While the energy companies say they support the thrust of the proposed changes, they have repeatedly urged the government to give priority to stable power supplies and say reform should be slowed down if this cannot be guaranteed.
Source: NewsOnJapan
