Abstract
In Japan, the Electric Utility Industry Law was amended in 1995 to open Japan’s generation and wholesale markets. The law was amended again in 1999 to facilitate greater deregulation. The crisis of electricity supply in California contains implications to establish a free market in Japan. Examples include how to keep the balance of supply and demand of electricity, what is the structural flaw of the market and more. As Electricity Utility Industry Council is expected to review the deregulation policies in 2003, they should avoid the occurrence of a similar situation in Japan.
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