TEPCO's customer info system not ready

 July 29, 2015

Delay in TEPCO's development of customer info system could affect electricity deregulation

http://mainichi.jp/english/english/newsselect/news/20150729p2a00m0na006000c.html

A delay in the development by Tokyo Electric Power Co. (TEPCO) of a system to provide customer information, which is necessary when customers switch power companies, could adversely affect the liberalization of retail electric power in April 2016, it has been learned.

TEPCO Executive Vice President Hiroshi Yamaguchi told the Economy, Trade and Industry Ministry at a July 28 meeting of a panel of experts deliberating challenges to electric power system reform that the company has lagged behind other utilities in the development of such a system.

Yamaguchi attributed the delay to a far larger number of customers in its service area than other power companies, and expressed concern that TEPCO may not be able to provide sufficient functions necessary for liberalization of electricity market by next April.

After the electricity deregulation, consumers can freely choose electric power companies from which they buy electricity.

In cases where customers in TEPCO's service area, including Tokyo, choose to buy power from another utility, TEPCO will be required to provide customer information such as their power equipment and past electricity consumption, to the other firm.

According to Yamaguchi's report to the ministry, TEPCO has 28 million individual and corporate customers in its service area, and assumes that up to 10 million of them will switch to other power suppliers.

TEPCO's development of relevant systems, including one to provide customer information to other utilities, is being delayed due to such a large number of customers and the need to renew in-house software and other systems when the company is to be split into a few entities simultaneously in April, according to Yamaguchi's explanation to the ministry panel.

TEPCO says that it will be able to conclude in late December this year whether the new systems can be put into operation in April 2016 as originally scheduled, while most of the other utilities expect that their new systems will be operational according to schedule.

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