In Japan, after the disaster on 3rd March 2011, the opposition to nuclear power is increasing. Due to lack of electricity, we were forced to endure rotating blackouts, and city functions in Tokyo were paralyzed. Consequently, we are looking for alternative energies that are safe and clean. Similarly, we are choosing measures to reduce the consumption of electricity. I will introduce you the method.
First, I will explain TEPCO, Tokyo Electric Power Company, Inc. It is the one of biggest companies in Japan, and also one of the worst companies in the world because of its management of the Fukushima accident. In my opinion, TEPCO is a typical Japanese company, which includes a seniority system and lifetime employment, thus it is a very conservative company and the management is unclear. Now, its biggest shareholder is Tokyo.
The system of purchasing surplus electricity is focused on demand side management. The advantage of this system is that if company does not use the amount of electricity as planned before, the electricity company buys the surplus electricity. In my view, it would suite for the japanese market. There is, however, the disadvantage that, if you use more electricity than planned, you can not see the price. You can know the price only after using it. I think that the system is very reasonable, so it would be suitable for the market, but the TEPCO should improve the system. Who wants to eat at the restaurant, if staff say you “I will tell you the price after eating”?