Building the Foundations of Local Communities

Appropriate transactions with consumers

Invigorating the deregulated energy market

NICIGAS upholds the philosophy of “Invigorating the deregulated energy market” and strives to create a fair competitive environment in the LP gas industry. Since the deregulation of LP gas, we have actively worked to invigorate the market. For the City Gas business, we entered the market when it was deregulated in April 2017, and in 2018 we entered the electric retail business and started providing energy in new markets. In August 2017, we established Tokyo Energy Alliance (TEA) in partnership with TEPCO Energy Partner to invigorate the deregulated market by increasing the number of new entrants in the city gas market.

Respond to the revised business practices of LP Gas

Since the deregulation of LP gas in 1997, we have from early on been an advocate of free competition and have actively worked to invigorate the market. In this process, we have confronted customs and practices that hinder deregulation, working alongside consumers to promote energy market deregulation. Since 2023, NICIGAS has participated in the Liquefied Petroleum Gas Distribution Working Group (LPG WG) under the Ministry of Economy, Trade and Industry’s Agency for Natural Resources and Energy, which is a body aimed at further promoting the deregulation of LP gas. This working group discusses ways to improve fair competition across the industry and enhance transparency in LP gas pricing.

Key themes

NICIGAS’ major initiatives

Deregulation of LP gas provider selection

NICIGAS is actively working to eliminate practices* that restrict consumers from freely choosing their LP gas provider in detached houses, particularly the free piping practice. *The free piping practice refers to the industry practice in which an LP gas company installs gas piping in newly built detached houses free of charge, in exchange for requiring consumers to sign long-term gas contracts. This limits consumers’ ability to choose their gas provider freely. ・The Company has gathered petitions from consumers opposing the free piping practice and are urging administrative authorities to take action to eliminate this practice.

Enhancing fair competition in the LP gas industry and transparency in pricing

Representative Director Yoshida participates as a committee member of the LPG WG, engaging in discussions to improve fair competition in the LP gas industry*i and enhance transparency in LP gas pricing*ii. Based on the discussions within this working group, the ministerial ordinance was partially revised. *i : In sales activities, including apartment complexes, there have been practices involving the provision of excessive services and benefits beyond normal business customs. *ii: In rental housing, there has been a practice where LP gas companies provide water heaters and other equipment to property owners free of charge, then recover the cost through tenants’ gas bills. ＜Summary of the revised ministerial ordinance＞・From July 2024, the provision of benefits beyond normal business customs in sales activities, including apartment complexes, will be prohibited. ・From April 2025, equipment costs must be included in the breakdown of LP gas pricing. ・Representative Director Yoshida, as a committee member of the LPG WG, has proposed measures to improve fair competition in the industry and enhance transparency in LP gas pricing. ・NICIGAS decided to comply with the above revised ministerial ordinance, ahead of its enforcement in July. On May 20, 2024, NICIGAS publicly announced its Declaration of Compliance to affirm its adherence to said ordinance. URL : https://x.gd/78D1e (Japanese text only)

Gathering information from consumer affairs centers and implementing measures to enhance customer service

NICIGAS regularly visits consumer affairs centers to collect potential customer feedback that is otherwise difficult to identify, and the Company utilizes this information to improve its services. ・The collected information is shared internally and leveraged for further service improvements. ・The Company has established a system that allows us to promptly respond to inquiries received by consumer affairs centers.