Relief for Electricity Final Guaranteed Supply Contractors to Grow to 30,000 Nationwide by Summer, Exclusive sales of electricity rate menus to help electricity refugees begin.

ENECHANGE Ltd. is pleased to announce that it has launched a service to provide multiple quotes for electricity rates to the 13,000*1 corporate customers nationwide that have concluded final guaranteed supply contracts. This is a service in which ENECHANGE prepares a rate menu*2 with new electric power companies that is lower than the newly revised wholesale market-linked final guaranteed rate, and provides it to companies that have no choice but to conclude a final guaranteed supply contract.
*1 From the number of contracts for final guaranteed supply from January 2021 to May 20, 2022, based on the data of the 73rd System Design Expert Meeting of the Electricity and Gas Transactions Monitoring Committee, “The Way the Final Guaranteed Supply Rates Should Be”.
*2 Since the new electricity rate menu is market-linked, it may be more expensive than the new final guaranteed supply rate during demand periods such as summer and winter due to the impact of market price hikes.

Final Security Supply Agreement for Electricity

≪What is a Final Guaranteed Supply?≫
It is a system that obliges a general transmission and distribution company to temporarily continue supplying electricity to a company that has concluded a high-voltage or special high-voltage supply contract, in the event that the company is unable to negotiate an electricity supply contract with any of the power companies due to bankruptcy or other unforeseen circumstances. It is also referred to as “last resort supply. Current rates are set at 1.2 times the standard rates set by the major electric power companies, but there has been a reversal of the situation where the free rates of the electric power companies are more expensive than the final guaranteed rates. The Ministry of Economy, Trade and Industry (METI) has announced that there were 13,045 users of last resort supply contracts as of May 20, and we estimate that the number will reach around 30,000 by this summer.

≪About the New Final Security Supply Agreement≫
At the “73rd Expert Meeting on System Design” held on May 31 by the Electricity and Gas Transactions Monitoring Committee, it was decided that final guaranteed supply contracts will be linked to the wholesale electricity market. The new final security rate will be set so that the wholesale market price of electricity will be incorporated into the metered charge, so that the price will always be at a premium. Specifically, it will reflect the simple average of area prices from the 21st of the previous month to the 20th of the previous month. The start date has not yet been determined.

New electricity rate menu proposed by ENECHANGE Biz

With almost all electric power companies still almost completely closed to accepting high-voltage and special high-voltage contracts, the new electricity rate menu for which we have begun accepting new applications will be available only through Ene-Change Biz. Since the rate menu is market-linked, it is designed to be less expensive than the new and final guaranteed rates, although it may be affected by market price hikes during demand periods such as summer and winter. In addition to explaining the above rate menu and risks, ENECHANGE Biz’s dedicated consultants will support your application from the Final Guaranteed Supply Agreement.

●ENECHANGE Biz website　https://enechange.jp/biz/input (Japanese only)

(Reference) Press release on proprietary fuel cost adjustment consulting service for new electric power companies (April 14, 2022)
https://enechange.co.jp/en/news/press/consulting-service2022/

About ENECHANGE Ltd.

ENECHANGE is an energy technology company that promotes a carbon-free society through digital technology with the mission of Changing Energy For A Better World. We offer services based on data utilization in the field of the 4Ds of Energy: Deregulation, Digitalization, Decarbonization, and Decentralization. Our company’s roots come from an energy data lab at the University of Cambridge, U.K., a country where liberalization is mature. ENECHANGE has a British subsidiary, SMAP Energy Limited, as well as a global network and analytical technology for energy data.
URL: https://enechange.co.jp/en/

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ENECHANGE Ltd.
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