Electricity Futures

About Electricity Futures

The electricity retail market in Japan was fully liberalized in April 2016, followed by a variety of system reforms, such as the revision of the rules on power grids and the establishment of Baseload market. Against this background, the market size of a power wholesale market, Japan Electric Power Exchange (JEPX), expanded rapidly to reach approximately one-third of the total electricity demand in Japan. As most of the power retail companies newly entered the market rely on JEPX for procurement, the importance of JEPX has increased and the need to hedge price volatility risk rose.
To meet such demands, TOCOM has listed several electricity futures contracts (East Area Baseload Electricity, West Area Baseload Electricity, Chubu Area Baseload Electricity^*, East Area Peakload Electricity, West Area Peakload Electricity, and Chubu Area Peakload Electricity^*).