Abstract
The retail competition in electric power market has been introduced in Japan from March 2000. Although the liberalization is limited in a part of the retail power market having about 30% share of total electricity demand, the liberalized customers segment is now under competitive circumstances among the utilities and new entrants. This paper examines the profitability of competitive pricing for eligible segmented customers through scenario-based model analysis focusing on demand characteristics of segmented customers. The model includes the utility's investment in power generation for segmented customers to consider the long-term profitability rather than the short-term one. Load leveling is not always achieved under profit-maximizing behavior of the utility because the profitability of competitive pricing depends on load patterns of bypassed customers and price differentials among power suppliers.
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