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. ＜Protect consumer rights and ensure a sound energy market: Ending the unfair practices
in the LP gas industry＞ 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 Company involves petitions from consumers opposing the free piping practice and has been urging administrative authorities to take action to eliminate this practice. Through these efforts, the principle of one right for one thing (specifically "the pipes is the customer’s asset") that the Company had long advocated, was established as a legal doctrine in the Supreme Court ruling on 23 December 2025, invalidating unjust equipment cost claims upon contract termination. Especially, the ruling that "due to the structure of the free pricing system, there are no business losses associated with the cancellation" is a groundbreaking decision that fundamentally denies the conventional business model which ties customers with opaque billing.

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. On 20th May 2024, NICIGAS publicly announced its Declaration of Compliance to affirm its adherence to said ordinance. Source: https://x.gd/78D1e (Japanese text only) *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. ＜Promoting a healthy/sound competition in the LP gas industry＞ Since the provision of benefits beyond normal business customs in sales activities, including at apartment complexes, was prohibited in July 2024, NCIGAS Group ensures strict legal compliance, comprehensive training program to all sales staff, and robust monitoring of the Company’s sales activities. ＜Ensuring transparency in LP gas costs＞ In response to the enforcement of revised ministerial ordinance (quote a price and mandatory breakdown disclosure), the Company ensures through itemization of equipment charges on invoices and such, and establishes a system to respond to inquiries regarding gas charges and other matters in an appropriate and timely manner.

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.