The Business Structure of Japan s Electric Industry for 1963-2016: Analysis on the Revenues and Expenditures throughout before and after the Deregulation

Hidekazu Aoki and Nobuo Kawamiya
Additional contact information
Hidekazu Aoki: Independent Researcher, 601 Diapalace-Motomiyacho, Motomiyacho 4-83-2, Showa-ku, 4660851, Nagoya, JAPAN,
Nobuo Kawamiya: Dr of Engineering, Professor Emeritus of Chukyo University, Fujimori 2-188, Meito-ku, 4650026, Nagoya, JAPAN.

International Journal of Energy Economics and Policy, 2019, vol. 9, issue 1, 316-325

Abstract: The Federation of Electric Power Companies (FEPC) of Japan has long been releasing the detailed financial statements of their member corporations (on their web site). We have analyzed the FEPC s financial data over half a century and have clarified the problems and distortions built in Japan s power industry through the dual pricing mechanism for the industrial use and the home-use sectors. In fact the former shares two thirds of the power demand and yields only small profits or even losses; and the latter, sharing one third of the demand, yields nearly all of the industry s profits. After the full retail deregulation, however, this home-use sector (the industry s treasure box) seems now suffering diminution of profitability: because the power majors have began to raise a cutthroat competition against each other. This price-cutting war might be considered very dangerous for the sustainability of this industry because this business is highly equipment-intensive and so severely vulnerable to any revenue instability.

Keywords: Electricity demand; Dualistic pricing; Income statement; Power retail deregulation (search for similar items in EconPapers)
JEL-codes: L5 L9 M4 Q4 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/6999/4124 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/6999/4124 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2019-01-40

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().