In accordance with the revised Electricity Business Act (April 2012), we have notified the changes to the Wheeling Service Provisions and submitted the application for a special case approval to the Minister of Economy, Trade and Industry (to be effective on July 1, 2012).

1. Changes to the Wheeling Service Provisions

(1) Wheeling service conditions to be applied when a Specified Electricity Utility uses the Wheeling Service

The Electricity Business Act was revised to allow Specified Electricity Utilities^*1 to procure power sources such as renewable energy by utilizing the electricity transmission/distribution network owned by General Electricity Utilities^*2. According to this revision, we have set new supply conditions to be applied when a Specified Electricity Utility utilizes the Wheeling Service. The supply conditions such as rates are basically the same as those applied to the case that General Electricity Utilities and Specialized Electricity Utilities use the Wheeling Service.

*1 Specified Electricity Utility: Supplies electricity utilizing its own power facilities and electric lines (electricity transmission/distribution facilities) upon demand of customers in specific regions.
*2 General Electricity Utility: Supplies electricity upon demand of the general public.

(2) Wheeling Service conditions to allow all of the generated renewable energy to be purchased

Based on the "fixed price purchasing scheme for renewable energy" stipulated by the "Act on Special Measures Concerning Procurement of Renewable Electric Energy by Operators of Electric Utilities", new Wheeling Service conditions have been set to allow renewable energy to be purchased utilizing the dedicated service line. The Wheeling Service conditions are applied to some of the approved power facilities specified in the Act on Special Measures Concerning Procurement of Renewable Electric Energy by Operators of Electric Utilities (those which fulfill the requirements).

(3) Lowered electricity rate applied to the mismatch between demand and generation beyond the mismatch range

At the conference on energy and environmental issues held in November 2011, a policy to lower the electricity rate for the power exceeding the fluctuation range was set in order to encourage the non-utility generation facilities to join the power generation market (as a part of the "action plan to achieve stable energy supply and demand"). According to this policy, we have decided to lower the electricity rate of the load fluctuation-linked power exceeding the fluctuation range (night time) based on Ordinance of the Ministry of Economy, Trade and Industry on wheeling service rate calculation. The following is the electricity rates applied to the load fluctuation-linked power (the updates are underlined).
*Consumer tax, etc. included. Fuel cost adjustment not taken into account.

Electricity rate within the fluctuation range (In the case that a power shortfall is upto 3% of the Wheeling Service contract power): 11.66 yen/kWh

Electricity rate beyond the fluctuation range (In the case that a power shortfall is beyond 3% of the Wheeling Service contract power）
Daytime in the summer: 40.69 yen/kWh
Daytime in other seasons: 35.50 yen/kWh
Nighttime: 21.62 yen/kWh *Currently 32.42 yen/kWh

Notes
Summer: From July 1 to September 30
Other seasons: From October 1 to June 30 in the following year
Daytime: From 8:00 AM to 10:00 PM (Without Sundays, national holidays, April 30-May2, December 30-January 3)
Nighttime: A time period other than Daytime

2. Application for a special case approval concerning new Wheeling Service conditions applied when using the Wheeling Service with the power supply systems interconnected at low voltage

Though power supply systems interconnected at low voltage are currently out of scope of the Wheeling Service, it was indicated in the "Policy concerning the regulation and system reform in the energy sector" (Cabinet decision on April 3, 2012) that the Wheeling Service with the power supply systems interconnected at low voltage will be available. Based on this change, new Wheeling Service conditions applied when using the Wheeling Service with the power supply systems interconnected at low voltage have been set.

Reference: "Wheeling Service for Specified Electricity Utilities", "New Wheeling Service conditions to allow renewable energy to be purchased utilizing the dedicated service line" and "Electricity Rates Applied to Load Fluctuation-linked Power" (PDF 131KB)