The regulatory environment for electric utilities in the European Union and Japan

The move towards liberalisation and concomitant deregulation of energy markets is part of a greater global process. Energy market liberalisation is not something new, though for Europe and Japan the trend towards more competitive electricity markets is relatively recent. This paper gives a comparison of the approaches to electricity market liberalisation in the European Union and in Japan. It shows similarities and differences with respect to market opening, grid access, independent power producers, social obligations and the role of renewable sources of energy for electricity generation. We conclude that improving economic efficiency is the key driver for the industrial reorganisation of the electricity supply industry in both regions, even though the approaches and the degree of liberalisation are different.