Electricity Futures Trading Starts in Japan
Tokyo, Sept. 17 (Jiji Press)--Electricity futures trading was launched on the Tokyo Commodity Exchange, or TOCOM, on Tuesday, expected to help new power companies achieve stable management and thus facilitate competition in Japan's electricity market.
The futures market got off to a quiet start with low trading volume, at a time when crude oil prices are surging in the wake of Saturday's attacks on oil facilities in Saudi Arabia.
The East Area Peakload electricity contract for October delivery fetched the first price of 10.9 yen per kilowatt-hour, lower than the standard price of 11 yen set by TOCOM in advance, while the West Area October contract saw no deal as of noon (3 a.m. GMT).
"We'll make efforts for the market's healthy development as a means of hedging price volatility risks," TOCOM President Takamichi Hamada said.
Price volatility has been a factor weighing on power industry newcomers, many of which do not their own power-generating equipment but procure electricity from the wholesale market.
[Copyright The Jiji Press, Ltd.]