Electricity deregulation is a system that allows consumers to freely choose their electricity provider and plan. Since April 2016, full deregulation has also applied to households, and a wide range of plans has emerged.
Why was electricity deregulation introduced?
Electricity deregulation was implemented in stages starting in 2000. The vulnerabilities in the power supply system came to light after the 2011 Great East Japan Earthquake, which accelerated deregulation for households. Its objectives are to stabilize electricity supply, restrain electricity charges, and improve corporate operating efficiency.
What are the benefits of electricity deregulation?
- You can choose the plan that best fits your needs from a wide range of options
- Smart meters make electricity usage more visible
- You can take advantage of plans that offer reward points or bundled discounts
- You can choose electricity generated from environmentally conscious renewable energy sources
- There are also distinctive plans, such as nighttime electricity plans, gasoline discounts, and plans bundled with unlimited video streaming
Are there any drawbacks or points to watch for?
- Comparing electricity providers and plans can take time and effort
- Cancellation fees or penalties may apply when ending a contract
- Market-linked plans carry the risk of sharp increases in electricity charges
Can you change electricity providers in a rental property?
If the contract is directly between the electricity provider and the tenant, switching is possible. However, individual changes are not possible in properties under a high-voltage bulk receiving contract or in properties where the landlord manages electricity collectively. A practical way to confirm this is to check whether you receive a monthly meter reading statement.
Frequently Asked Questions (FAQ)
Q. If a new electricity provider goes bankrupt, will the electricity stop?
No. The contract will automatically move to a transitional plan, and electricity supply will continue.
Q. Is the switching procedure complicated?
No. You only need to apply with the new electricity provider, and the new provider will handle the cancellation procedure with the previous provider on your behalf.
Q. Can an all-electric home also switch to a new electricity provider?
Yes, but you need to choose a provider that offers a plan for all-electric homes.
Managing electricity costs in rental properties is an important part of property management that improves tenant satisfaction.
