Trading volume in Japan’s power futures is set to climb as companies prepare for the upcoming expiration of a key agreement between the nation’s largest utilities, a shift expected to jolt the market.
The power purchase pact, which gives the retail arms of Tokyo Electric Power and Chubu Electric Power access to energy from top generator Jera, will lapse at the end of the fiscal year in March. That means the two largest distributors could procure more spot electricity — or, conversely, Jera could flood the market.
This is also an opportunity for other suppliers and retailers to secure deals with Tepco, Chubu and Jera.
