New Power Traders Association to Make Policy Recommendations for the Planned Mid-Long-Term Market

More than 20 companies engaged in physical power trading in Japan have established the Japan Power Traders Association (JPTA) to provide practical industry input and policy recommendations on improving market design and trading rules.

The voluntary association includes major utilities, new electricity retailers, trading houses, financial institutions, and foreign companies. To ensure that discussions are grounded in practical experience, members must engage in physical power trading in Japan, such as through registration as an electricity retailer. The association will have no chair or representative company, while Tohoku Electric Power Energy Trading and JERA Global Markets will jointly serve as its secretariat.

The JPTA will focus on three areas: (i) examining practical issues concerning market design and trading rules, (ii) addressing industry-wide issues such as standardization, and (iii) making policy recommendations to support the development of a sound and sustainable market. It initially plans to establish separate subcommittees on the planned Mid-Long Term Market and standardization. Their activities will focus on recommendations concerning the Mid-Long Term Market and standardization initiatives, including the development of contract templates for industry-wide use.

Participants identified to date include: Tohoku Electric Power Energy Trading, JERA Global Markets, Chugoku Electric Power, Hokkaido Electric Power, TEPCO Energy Partner, Tokyo Gas, Osaka Gas, Toho Gas, erex, SB Power, Mitsui & Co., Goldman Sachs Securities, and Energy Grid, a Citadel affiliate.

🔍 Shulman Commentary:

The establishment of the new power traders association shows growing interest among industry players in influencing the market structure and rule design for the planned Mid-Long-Term Market, a process currently led by METI’s expert committee. Its timing is particularly relevant as METI is still developing the detailed rules for the Mid-Long Term Market.

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