03/06/2024 | Press release | Distributed by Public on 03/06/2024 02:36
The JFTC also today issued warnings to Chubu Electric Power Miraiz, Toho Gas and Cenergy Co. (hereinafter referred to as "Cenergy"), because they were likely to be in violation of the Article 3 of the Act.
(i) Considering the liberalization of the city gas supply for residential scheduled on April 1, 2017, Chubu Electric Power and Toho Gas discussed that Toho Gas would announce the city gas rates for residential use including discount for contracting electricity as well ahead of Chubu Electric Power and after that Chubu Electric Power would announce the lower rates. In the discussion, Chubu Electric Power required Toho Gas not to cut their rates lower than those of Chubu Electric Power after the Chubu Electric Power's announcement.
(ii) Considering the purchase period of electricity under the FIT System (Note 3) scheduled to be expired sequentially from November 2019, Chubu Electric Power and Toho Gas discussed that Chubu Electric Power would announce the purchase price of electricity after the expiration (hereinafter referred to as "Graduated FIT Price") ahead of Toho Gas. In the discussion, Chubu Electric Power required Toho Gas not to sharply exceed their Graduated FIT Price.
(Note 3) The term "FIT System," or Feed-In Tariff System, means a system under which electricity suppliers are required to purchase electricity generated with renewable energy for a certain period and at a certain price.
(iii) Chubu Electric Power Miraiz (it means Chubu Electric Power before March 31, 2020.), Cenergy and Toho Gas decided prospective winners for each procurement of liquefied natural gas (LNG) supply which is delivered by lorry cars to users located in Aichi, Gifu and Mie Prefectures, and allowed the winner to be successful in the procurement.
(Note 4) There were several LNG suppliers for users located in Aichi, Gifu and Mie Prefectures other than Chubu Electric Power, Chubu Electric Power Miraiz, Cenergy and Toho Gas.
Furthermore, the JFTC provided the Electricity and Gas Market Surveillance Commission with information on the facts found as a result of the investigations in order to promote proper competition in the city gas and electricity markets.
* This announcement is tentative translation. Please refer to the original text written in Japanese for more details.