April 2020
Kansai Transmission and Distribution, Inc.
starts operations
In alignment with the revision of the Electricity Business Act, in April 2020, Kansai Transmission and Distribution, Inc. became the successor of Kansai Electric Power’s general power transmission and distribution business.
As Kansai Transmission and Distribution, we will continue to provide a reasonably priced, safe and stable supply of electricity to support industry and people in their daily life, and contribute to the sustainable development of society.
The Story Behind the Corporate Split
The electric power business in Japan has been operating in a format whereby each electric power company provides power exclusively in each region of Japan, through the three business divisions of power generation, power transmission and distribution, and retail, all operating within the same company. Additionally, the retail fee for electricity has been determined using the “fully distributed cost method,” according to the cost of power generation, power transmission, etc. This has ensured that investment in power transmission and distribution equipment and facilities can be recovered.
While these mechanisms have helped to facilitate the supply of electric power nationwide, they have also somewhat impeded the efficient management of power companies. This has led to the “Electricity System Reform” aimed at securing a stable supply of electric power, suppressing electricity rates to the maximum extent possible, and expanding choices for electricity consumers and opportunities for businesses.
The Electricity System Reform is progressing in the three major steps outlined below. From April 2020, electric power companies will be legally prohibited from operating the three businesses of power generation, power transmission and distribution, and retail within the same company. In light of these reforms, Kansai Electric Power will split off its power transmission and distribution business.
Three Steps for Advancing the Liberalization of Electric Power
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STEP 1
Facilitate cross-regional exchange of electricity
Expanding the network of wide-area transmission operators
2015
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STEP 3
Unbundle “electricity transmission” companies from electric power companies
Secure even further neutrality of the power transmission and distribution business via a legal unbundling system
April 2020
Press Releases to Date on the Company Split
- March 26, 2018 Organizational Revision for Advancing the Medium-Term Management Plan Focused on the Company Split of the Power Transmission and Distribution Business
- February 26, 2019 Establishment of a Preparatory Company for the Company Split of the General Power Transmission and Distribution Business
- April 25, 2019 Conclusion of an Agreement on an Absorption-type Split for the Company Split of the General Power Transmission and Distribution Business
Kansai Transmission and Distribution Business Overview
Beginning April 2020, Kansai Transmission and Distribution will be responsible for the power transmission and distribution business, and operations will be under Kansai Electric Power, which will handle the power generation and retail businesses. Both companies will strive to secure both greater neutrality and fairer and more transparent business operations.
We will continue to supply electricity to our customers with this new format of operations. Kansai Transmission and Distribution and Kansai Electric Power will work together during an emergency to restore any power outages that may occur due to disasters or other such events.
Concept Behind the Logo
The Kansai Transmission and Distribution logo embodies the aspirations we have for our business.
The design uses V for voltage and A for ampere as basic motifs, which are shaped into the infinity symbol.
The logo represents the perpetual bond that links customers with power generation and power transmission and distribution vendors, as well as the ceaseless mission of ensuring safe and stable power transmission and distribution, and the infinite possibilities it holds.
The logo has a sense of movement to it that is both powerful and gentle, expressing reliability and flexibility and creating a harmony by smoothly connecting people and society.
The slanted S-shaped logo also captures our intention to safely and stably provide electric power to customers.