Boston, MA – The Tokyo Commodity Exchange (TOCOM) is preparing to launch its electricity futures market with an anticipated start date in September 2019 subject to approval of Ministry of Economy, Trade and Industry. The electricity futures contract is being designed for 15 forward months with East and West market clearing locations. TOCOM also has existing futures markets for precious metals, rubber, agriculture, and oil. Japan is the third largest electricity market in the world with over 1,000 TWh of generation and is also the world’s largest LNG market importing over 83 million metric tons annually. Japan has deregulated the electricity and gas markets enabling competition to supply 87 million electricity and 25 million gas end-use customers. Since full deregulation of the electricity market in April 2016, over 500 retail marketing companies have entered the market and about 18% of the customers have switched from utility supply to a retailer. The customer switch rate has averaged over 400,000 per month. The gas market deregulated in April 2017 with over 10% of end-use customers having already switched suppliers. Deregulation has also spurred dramatic growth of electricity trading activity on JEPX, the physical spot market, which is now trading over 30% of… continue reading
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Source: CTRM Center