With the launch of the Japan Electric Power Exchange (JEPX), Japan has created its first wholesale electricity trading market. The exchange offers day-ahead spot contracts and two types of forward contracts involving counter-party trades up to a year ahead. In the first day's trading on JEPX, the average price for electricity was ¥7.67/kWh (¢7.1/kWh).
Japan is currently in the midst of liberalising its electricity market and most recently allowed all small business consumers to have freedom of choice for supplier, allowing suppliers other than the 10 power utilities to provide electricity to small businesses, as well as to large power users. The first stage of liberalisation took place in 2000.
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