Energy Regulatory Reform and Competition Policy

ABSTRACT

There are currently a number of assessment procedures being conducted concerning regulatory reform in the energy sector. These regulatory reforms have had an effect, and competition has already begun in areas such as electricity, gas, oil, and LPG (liquefied petroleum gas) that transcends the traditional boundaries of the energy inter-industry.

On the other hand, the established regulatory administration, which in the past had aimed to cultivate the industry, is having no choice but to transform, and it is becoming important for it to maintain and develop the market function while depending on rules. Competitive pressure exceeding that of the existing energy sector has gradually increased, and a necessity to think from a new angle about the introduction of rules concerning cross-cutting competition has also emerged. It is necessary to examine and understand the appropriate shapes of competition policy, “rule-dependence”, and “competition of after-the-fact regulation”, which could be called modern issues. The strength of competition policy has traditionally been focused on suppliers, not customers. Suppliers thinking carefully about the needs of customers and consumers, and then how to meet these needs – it is precisely this kind of scenario that will lead suppliers and manufacturers towards strengthening their true capability amidst globalization. To further promote this situation, it will become necessary to understand the system of competition laws (the content of antitrust laws, which are the basis of competition laws, and the role of the Japan Fair Trade Commission), and confirm the significance of the market in competition laws as well as the process which determines such a market. There is a need to broadly spur the “market”, have a broad grasp of “customers”, and consider the interests of “consumers” when it comes to “rule-dependent” competition policies that give emphasis to rules.