JAPAN Law and Practice Contributed by: Rintaro Hirano, Yutaro Fujimoto, Yurika Masakane and Yutaro Kato, Nagashima Ohno & Tsunematsu
5.5 Monopoly Rights for Electricity Distribution Entities See 4.5 Monopoly Rights to Provide Transmis- sion Services . 5.6 Electricity Distribution System Charges and Terms of Service Unlike TSOs, DSOs are not obliged to obtain the approval of METI with regard to their tariff rates and the terms and conditions of distribu- tion services. However, the Electricity Busi- ness Act requires a DSO to make a prior writ- ten notification to METI if the operator sets or changes its tariff rates or prepares or amends the terms and conditions of its distribution ser- vices. If METI considers that such tariff rates or such terms and conditions do not comply with certain requirements, METI may order the DSO to revise the tariff rates or the terms and condi- tions. The requirements are set out in the criteria for examinations concerning dispositions of the Minister of Economy, Trade and Industry under the Electricity Business Act ( denki jigyoho nimo- tozuku keizaisangyodaijin no shobun nikakaru shinsakijuntou ).
See also 4.6 Transmission Charges and Terms of Service . Tariff rates and the terms and condi- tions of the distribution services of DSOs must be in alignment with those of TSOs in many respects. For instance, unit prices of distribution services of DSOs must be within 5% of those of TSOs on an annual average basis.
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