Deregulation in Japan starts to take hold with the announcement that eRex Co., a new entrant in the energy market in the country, will start supplying electricity to residential customers at discount rates. Residents planning to live in a condominium that is being built east of Tokyo will be the first beneficiaries when the condominium opens in two year's time.
Japan's power market was deregulated in 2000, when surplus power generated by non-utility companies was allowed to be sold. However, purchasers were committed to buying more than 500 kW. eRex Co. has managed to overcome this by viewing the condominium – made up of 1,900 residential units – as a single user. Electricity charges are expected to be about 5% lower than those currently levied by former monopoly Tokyo Electric Power Co.