Chapter I General Provisions

(Purpose) Article 1 The purpose of this Act is to protect the interests of electricity users and move toward achieving the sound development of electricity business by realizing appropriate and reasonable management of electricity business, and assuring public safety and promoting environmental preservation by regulating the construction, maintenance and operation of electric facilities.

(Definitions) Article 2 (1) In this Act, the meanings of the terms listed in the following items are as provided for by each respective item: (i) retail service: supplying electricity to meet general demand; (ii) electricity retail: business of providing a retail service (excluding the part that constitutes general electricity transmission and distribution, specified electricity transmission and distribution, or electricity generation); (iii) electricity retailer: Person who has been registered under the following Article to conduct electricity retail; (iv) cross-area wheeling service: service pursuant to which a person receives electricity from another person and simultaneously supplies the other person with the same quantity of electricity as that received, at a point other than where the first person has received electricity; (v) intra-area wheeling service: any of the following services: (a) service pursuant to which a person receives electricity from another person engaged in the business of providing a retail service, and simultaneously supplies the other person with electricity in a quantity equivalent to the quantity of electricity used for the business of providing a retail service conducted by the other person at a point other than where the person received the electricity; and (b) service pursuant to which a person receives electricity from another person who maintains and operates electric facilities for the generation of electricity other than electric facilities for the generation of electricity to be used for electricity business (hereinafter referred to as "electric facilities for non-electricity business" in this item (b)), where the electricity received by the person is generated by the electric facilities for non-electricity business (including electric facilities for non-electricity business maintained and operated by a person who has a close association with the other person as specified by Order of the Ministry of Economy, Trade and Industry), and simultaneously supplies the other person with electricity in the quantity requested in advance by the other person (limited to a quantity that is capable of meeting demand from the other person or a person who has a close association with the other person as specified by Order of the Ministry of Economy, Trade and Industry) at a point other than where the person received the electricity. (vi) wheeling service: cross-area wheeling service and intra-area wheeling service; (vii) electricity quantity adjustment service: service pursuant to which a person receives the electricity specified in (a) or (b) below from another person set forth therein and simultaneously supplies the other person with electricity in the quantity requested in advance by the other person at the point where the electricity has been received: (a) a person who maintains and operates electric facilities for the generation of electricity: the electricity generated by the electric facilities for the generation of electricity; or (b) a person who conducts specified wholesale supplying (meaning supplying electricity to a person who provides a retail service, which satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as being particularly necessary for ensuring the efficient operation of electricity business; hereinafter the same applies in (b)): the electricity for the specified wholesale supply (in the case of the person set forth in (a), excluding the electricity specified in (a)); (viii) general electricity transmission and distribution: business whereby a utility provides a wheeling service or an electricity quantity adjustment service in its service area by using electric facilities for the transmission and distribution of electricity that it independently maintains and operates (excluding the part that constitutes electricity generation), including the business of providing any of the following retail services by using the electric facilities for the transmission and distribution of electricity (excluding the part that constitutes electricity generation): (a) supplying electricity to guarantee electricity supply to meet general demand (excluding demand from users who receive retail service from an electricity retailer or a registered specified electricity transmission and distribution utility (meaning a registered specified electricity transmission and distribution utility as prescribed in Article 27-19, paragraph (1)); the same applies in (b)) in the utility's service area (excluding an isolated island (limited to that specified by Order of the Ministry of Economy, Trade and Industry as an isolated island where electric lines that the utility independently maintains and operates within the area are not electrically connected with the main electric lines that it maintains and operates; simply referred to as an "isolated island" in (b) and Article 21, paragraph (3), item (i))) (hereinafter referred to as a "last resort service"; and (b) if there is an isolated island within the utility's service area, supplying electricity to guarantee electricity supply to meet general demand on the isolated island (hereinafter referred to as an "isolated island service"); (ix) general electricity transmission and distribution utility: a person who has obtained a license under Article 3 to conduct general electricity transmission and distribution; (x) electricity transmission: business whereby a utility provides general electricity transmission and distribution utilities with a cross-area wheeling service by using electric facilities for the transmission of the electricity that it independently maintains and operates (excluding the part that constitutes general electricity transmission and distribution) and where the electric facilities for the transmission of electricity to be used for the business satisfy the requirements specified by Order of the Ministry of Economy, Trade and Industry; (xi) electricity transmission utility: a person who has obtained a license under Article 27-4 to conduct electricity transmission; (xii) specified electricity transmission and distribution: business whereby a utility provides a retail service or provides another person engaged in electricity retail or general electricity transmission and distribution with a wheeling service for supplying electricity to be used for electricity retail or general electricity transmission and distribution at a specified service point by using electric facilities for the transmission of electricity and for the distribution of the electricity that it independently maintains and operates (excluding the part that constitutes electricity generation); (xiii) specified electricity transmission and distribution utility: person who has given notification under Article 27-13, paragraph (1) to conduct specified electricity transmission and distribution; (xiv) electricity generation: business whereby a utility generates electricity to be used for electricity retail, general electricity transmission and distribution, or specified electricity transmission and distribution by using electric facilities for the generation of the electricity that it independently maintains and operates, and where the electric facilities for the generation of electricity to be used for the business satisfy the requirements specified by Order of the Ministry of Economy, Trade and Industry; (xv) electricity generation utility: a person who has given notification under Article 27-27, paragraph (1) to conduct an electricity generation; (xvi) electricity business: electricity retail, general electricity transmission and distribution, electricity transmission, specified electricity transmission and distribution, and electricity generation; (xvii) electricity utility: electricity retailer, general electricity transmission and distribution utility, electricity transmission utility, specified electricity transmission and distribution utility, and electricity generation utility; and (xviii) electric facilities: machines, apparatus, dams, waterways, reservoirs, electric lines, and other facilities installed for the purpose of generating, transforming, transmitting, distributing or using electricity (excluding those installed in ships, vehicles or aircrafts, and those specified by Cabinet Order). (2) If a general electricity transmission and distribution utility conducts any of the following businesses, the relevant business is deemed to be general electricity transmission and distribution: (i) business whereby the general electricity transmission and distribution utility supplies another general electricity transmission and distribution utility with electricity to be used for general electricity transmission and distribution; (ii) business whereby the general electricity transmission and distribution utility supplies an intra-area wheeling service, an electricity quantity adjustment service, a last resort service, or an isolated island service in its service area by using electric facilities for the transmission of electricity and for the distribution of electricity that a specified electricity transmission and distribution utility maintains and operates, while receiving a wheeling service from the specified electricity transmission and distribution utility; and (iii) business whereby the general electricity transmission and distribution utility supplies electricity by obtaining the license set forth in Article 24, paragraph (1), and business whereby it installs electric lines that it is to independently maintain and operate in an area other than its service area and provides a cross-area wheeling service (limited to services for supplying electricity to be used for electricity retail or specified electricity transmission and distribution or electricity for the intra-area wheeling service set forth in item (v), (b) of the preceding paragraph) via the electric lines. (3) Business whereby an electricity transmission utility provides a general electricity transmission and distribution utility with a cross-area wheeling service is deemed to be electricity transmission.

Chapter II Electricity Business

Section 1 Electricity Retail Subsection 1 Registration of Business

(Registration of Business) Article 2-2 A person who intends to conduct electricity retail must be registered by the Minister of Economy, Trade and Industry.

(Application for Registration) Article 2-3 (1) A person who intends to be registered under paragraph (1) of the preceding Article must submit a written application to the Minister of Economy, Trade and Industry, stating the following matters, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry: (i) the name and address of the applicant, as well as the name of the representative if the applicant is a corporation; (ii) the names and locations of the principal business office and any other business office of the applicant; (iii) matters concerning ensuring the supply capability expected to be required for meeting the electricity demand of the recipient of the retail service; (iv) the scheduled date of commencement of business; and (v) other matters specified by Order of the Ministry of Economy, Trade and Industry. (2) The written application set forth in the preceding paragraph must be accompanied by a document pledging that the applicant does not fall under any of the items of Article 2-5, paragraph (1) (excluding item (iv)), documents stating the matters concerning the development of a system for performing electricity retail appropriately and reliably, and any other documents specified by Order of the Ministry of Economy, Trade and Industry.

(Execution of Registration) Article 2-4 (1) When an application for registration under Article 2-2 has been filed, the Minister of Economy, Trade and Industry must register the following matters in the registry of electricity retailers, except when refusing to register pursuant to paragraph (1) of the following Article: (i) the matters listed in the items of paragraph (1) of the preceding Article (excluding item (v)); and (ii) the date of registration and registration number. (2) If the Minister of Economy, Trade and Industry has completed registration under the preceding paragraph, the minister must notify the applicant to that effect without delay.

(Refusal of Registration) Article 2-5 (1) If a person who has submitted a written application set forth in Article 2-3, paragraph (1) falls under any of the following items, or if the written application or any of the documents accompanying it contains a false statement of an important matter or lacks a statement of an important fact, the Minister of Economy, Trade and Industry must refuse to register the applicant: (i) a person who is subject to a fine or more severe punishment for a violation of this Act or any order issued under this Act, if two years have not passed since the person finished serving the sentence or ceased to be subject its enforcement; (ii) a person whose registration was rescinded pursuant to Article 2-9, paragraph (1), before the elapse of a period of two years since the date of rescission; (iii) a corporation, any of whose officers falls under either of the preceding two items; and (iv) a person who is expected to be unlikely to be able to ensure the supply capability required for meeting the electricity demand of the recipients of the retail service, or any other person who is found to be unsuitable for the protection of the interest of electricity users. (2) If the Minister of Economy, Trade and Industry refuses to register pursuant to the preceding paragraph, the minister must send a document stating the reasons for the refusal to the person who filed the written application.

(Registration of Change) Article 2-6 (1) When intending to change the matter set forth in Article 2-3, paragraph (1), item (iii), an electricity retailer must obtain the registration of change from the Minister of Economy, Trade and Industry; provided, however, that this does not apply to a minor change specified by Order of the Ministry of Economy, Trade and Industry. (2) An electricity retailer who intends to obtain registration of a change as set forth in the preceding paragraph must submit a written application stating the matters subject to change to the Minister of Economy, Trade and Industry, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry. (3) The provisions of Article 2-3, paragraph (2) and the preceding two Articles apply mutatis mutandis to the registration of change set forth in paragraph (1). In this case, the phrase "the following matters" in Article 2-4, paragraph (1) is deemed to be replaced with "the matters subject to change" and the phrase "a person who has submitted a written application set forth in Article 2-3, paragraph (1) falls under any of the following items" in paragraph (1) of the preceding Article is deemed to be replaced with "a person who has submitted a written application for the registration of change falls under any of the following items (excluding item (ii))". (4) When there has been a change to the matters listed in the items of Article 2-3, paragraph (1) (excluding item (iii)) or when an electricity retailer has made a minor change specified by Order of the Ministry of Economy, Trade and Industry as set forth in the proviso to paragraph (1), the electricity retailer must notify the Minister of Economy, Trade and Industry to that effect without delay. (5) When the Minister of Economy, Trade and Industry accepts the notification under the preceding paragraph, the minister must register the matters set forth in Article 2-4, paragraph (1), item (i), among those contained in the notification, in the registry of electricity retailers.

(Succession) Article 2-7 (1) In the event of a transfer of all electricity retail, or the inheritance, merger or split of a retail electricity utility (limited to those resulting in the taking over of the whole of a electricity retail), the transferee of all electricity retail, the heir, the corporation surviving after the merger or the corporation newly established upon the merger, or the corporation that has taken over all electricity retail upon the split succeeds to the status of the retail electricity utility; provided, however, that this does not apply when the transferee of all electricity retail, the heir, the corporation surviving after the merger or the corporation newly established upon the merger, or the corporation that has taken over all electricity retail upon the split falls under any of the items of Article 2-5, paragraph (1) (excluding item (iv)). (2) A person who has succeeded to the status of a retail electricity utility pursuant to the preceding paragraph must notify the Minister of Economy, Trade and Industry to that effect without delay. (3) The provisions of paragraph (5) of the preceding Article apply mutatis mutandis to the notification under the preceding paragraph.

(Suspension and Discontinuation of Business, and Dissolution of Corporations) Article 2-8 (1) If an electricity retailer suspends or discontinues its business, it must notify the Minister of Economy, Trade and Industry to that effect without delay. (2) If a corporation acting as an electricity retailer is dissolved for reasons other than a merger, its liquidator (or its bankruptcy trustee if the dissolution is based on an order of commencement of bankruptcy proceedings) must notify the Minister of Economy, Trade and Industry to that effect without delay. (3) Before suspending or discontinuing its business, an electricity retailer must publicize the intention to do so among the recipients of its retail service pursuant to provisions by Order of the Ministry of Economy, Trade and Industry.

(Rescission of Registration) Article 2-9 (1) If an electricity retailer falls under any of the following items, the Minister of Economy, Trade and Industry may rescind the registration made under Article 2-2: (i) the electricity retailer has violated this Act or an order or ruling pursuant thereto and the violation is found to be harmful to the public interest; (ii) the electricity retailer has been registered under Article 2-2 or obtained registration of change under Article 2-6, paragraph (1) by wrongful means; and (iii) the electricity retailer now falls under Article 2-5, paragraph (1), item (i) or (iii). (2) The provisions of Article 2-5, paragraph (2) apply mutatis mutandis to the case set forth in the preceding paragraph.

(Cancellation of Registration) Article 2-10 The Minister of Economy, Trade and Industry must cancel the registration of the relevant electricity retailer when a notification of discontinuation of electricity retail or notification of dissolution under Article 2-8, paragraph (1) or (2) has been given, or when the minister has rescinded the registration pursuant to paragraph (1) of the preceding Article.

(Delegation to Order of the Ministry of Economy, Trade and Industry) Article 2-11 Beyond what is provided for in Article 2-2 through the preceding Article, any matters necessary for the registration of an electricity retailer are specified by Order of the Ministry of Economy, Trade and Industry.

Subsection 2 Services

(Ensuring Supply Capabilities) Article 2-12 (1) An electricity retailer must ensure the supply capability required for meeting the electricity demand of the recipients of its retail service, except when there are justifiable grounds not to do so. (2) When the Minister of Economy, Trade and Industry finds that, because an electricity retailer fails to ensure the supply capability required for meeting the electricity demand of the recipients of its retail service, the interest of electricity users is being harmed or there is a risk of that harm, the minister may order the electricity retailer to ensure the supply capability required for meeting the electricity demand and take other necessary measures.

(Explanation of Supply Conditions) Article 2-13 (1) If an electricity retailer and a person who engages in the intermediary, brokerage or agency service in the course of trade for the conclusion of an agreement on a retail service provided by an electricity retailer (hereinafter referred to as a "retail service agreement") (an electricity retailer and the person are hereinafter referred to as "electricity retailer, etc.") intend to conclude a retail service agreement with a person who intends to receive a retail service (excluding a person who is an electricity utility; hereinafter the same applies in this Article) or provide intermediary, brokerage or agency service therefor, the electricity retailer, etc. must explain the rates and other supply conditions for the retail service to the prospective recipient, pursuant to provisions by Order of the Ministry of Economy, Trade and Industry. (2) When giving the explanation under the preceding paragraph, an electricity retailer, etc. must deliver to the person who intends to receive a retail service a document stating the rates and other supply conditions for the retail service as specified by Order of the Ministry of Economy, Trade and Industry, except in any cases specified by Order of the Ministry of Economy, Trade and Industry. (3) In lieu of delivering a document under the preceding paragraph, an electricity retailer, etc. may provide, with the consent of a person who intends to receive a retail service, the matters that are required to be contained in the document by a means using an electronic data processing system or any other means using information communications technology specified by Order of the Ministry of Economy, Trade and Industry, pursuant to Cabinet Order provisions. In this case, the electricity retailer, etc. is deemed to have delivered the relevant document.

(Delivery of Documents) Article 2-14 (1) If an electricity retailer, etc. has concluded a retail service agreement with a person who intends to receive a retail service (in the case of a person engaged in the intermediary service for the conclusion of a retail service agreement in the course of trade, when a retail service agreement has been formed through the person's intermediation), it must deliver a document stating the following matters to the prospective recipient without delay, except in any cases specified by Order of the Ministry of Economy, Trade and Industry: (i) the name and address of the electricity retailer, etc.; (ii) the date of agreement; and (iii) the rates and other supply conditions for the retail service as specified by Order of the Ministry of Economy, Trade and Industry. (2) In lieu of delivering a document under the preceding paragraph, an electricity retailer, etc. may provide, with the consent of a person who intends to receive a retail service, the matters that are required to be contained in the document by means of using an electronic data processing system or any other means using information communications technology specified by Order of the Ministry of Economy, Trade and Industry, pursuant to Cabinet Order provisions. In this case, the electricity retailer, etc. is deemed to have delivered the relevant document.

(Handling of Complaints) Article 2-15 An electricity retailer must appropriately and promptly handle complaints and inquiries from the recipients of its retail service (including a person who intends to receive a retail service from the electricity retailer, and excluding a person who is an electricity utility) with regard to the electricity retailer's operational procedure for providing the retail service or the rates and other supply conditions for the retail service provided by the electricity retailer.

(Prohibition of Use of Name) Article 2-16 (1) An electricity retailer must not allow another person to use its name to conduct electricity retail. (2) An electricity retailer must not allow another person to operate in electricity retail in its name, regardless of whether by leasing business or any other means whatsoever.

(Business Improvement Order) Article 2-17 (1) If the Minister of Economy, Trade and Industry finds that the protection of the interests of electricity users or the sound development of electricity businesses is hindered or likely to be hindered because electricity retail is inappropriate, the minister may order the electricity retailer to take necessary measures to improve the management of electricity retail to the extent necessary to secure the interest of electricity users or public interest. (2) If an electricity retailer, etc. violates Article 2-13, paragraph (1) or (2), the Minister of Economy, Trade and Industry may order the electricity retailer, etc. to take necessary measures to improve its operational procedures. (3) If an electricity retailer, etc. violates Article 2-15, the Minister of Economy, Trade and Industry may order the electricity retailer, etc. to take necessary measures to improve its operational procedures.

Section 2 General Electricity Transmission and Distribution Subsection 1 Business Licenses

(Business Licenses) Article 3 A person who intends to conduct general electricity transmission and distribution must obtain a license from the Minister of Economy, Trade and Industry.

(Application for License) Article 4 (1) A person who intends to obtain a license under the preceding Article must submit a written application stating the following matters to the Minister of Economy, Trade and Industry: (i) the trade name and address of the applicant; (ii) the names of directors (or the names of directors and executive officers in the case of a company with nominating committee, etc.; the same applies in Article 6, paragraph (2), item (iii)); (iii) the names and locations of the principal business office and any other business office of the applicant; (iv) the service area; and (v) the following matters concerning the electric facilities to be used for general electricity transmission and distribution: (a) regarding electric facilities for the transmission of electricity, the site where they are to be installed, the electric system, means of installation, number of circuits, frequency, and voltage; (b) regarding electric facilities for the distribution of electricity, the electric system, frequency, and voltage; (c) regarding electric facilities for the transformation of electricity, the site where they are to be installed, frequency, and output capacity; and (d) regarding electric facilities for the generation of electricity, the site where they are to be installed, the type of motive power, frequency, and output capacity. (2) The written application set forth in the preceding paragraph must be accompanied by a business plan, estimate of business income and expenditure, and other documents specified by Order of the Ministry of Economy, Trade and Industry.

(Standards for Licenses) Article 5 The Minister of Economy, Trade and Industry must not grant a license under Article 3 unless the Minister finds that the application for the license under the Article conforms to all of the following items: (i) the commencement of the general electricity transmission and distribution corresponds to demand in the service area; (ii) the applicant has sufficient financial basis and technical capability to perform the general electricity transmission and distribution competently; (iii) the general electricity transmission and distribution is based on a reliable plan; (iv) the electric facilities to be used for the general electricity transmission and distribution are capable of meeting the demand in the service area; (v) the commencement of the general electricity transmission and distribution will not result in the existence of an excessive number of electric facilities to be used for general electricity transmission and distribution within the all or part of the service area; and (vi) beyond what is listed in the preceding items, the commencement of the general electricity transmission and distribution is necessary and appropriate for the comprehensive and reasonable development of electricity business and for the promotion of other public interests.

(License Certificates) Article 6 (1) When the Minister of Economy, Trade and Industry grants a license under Article 3, the minister is to issue a license certificate. (2) The license certificate must state the following matters: (i) the date of grant of the license and the license number; (ii) the trade name and address of the licensee; (iii) the names of directors; (iv) the names and locations of the principal business office and any other business office of the licensee; (v) the service area; and (vi) the following matters concerning the electric facilities to be used for general electricity transmission and distribution: (a) regarding electric facilities for the transmission of electricity, the site where they are installed, the electric system, means of installation, number of circuits, frequency and voltage; (b) regarding electric facilities for the distribution of electricity, the electric system, frequency and voltage; (c) regarding electric facilities for the transformation of electricity, the site where they are installed, frequency and output capacity; and (d) regarding electric facilities for the generation of electricity, the site where they are installed, the type of motive power, frequency and output capacity.

(Organs) Article 6-2 A general electricity transmission and distribution utility must be a stock company which consists of the following: (i) the board of directors; and (ii) auditors, an audit and supervisory committee, or a nominating committee, etc. (meaning the nominating committee, etc. prescribed in Article 2, item (xii) of the Companies Act (Act No. 86 of 2005)).

(Obligation to Commence Business) Article 7 (1) A general electricity transmission and distribution utility must commence business within a period designated by the Minister of Economy, Trade and Industry not exceeding ten years from the day when the general electricity transmission and distribution utility obtained a business license. (2) If the Minister of Economy, Trade and Industry finds it particularly necessary, the minister may designate the period set forth in the preceding paragraph by category of service area. (3) When the Minister of Economy, Trade and Industry receives an application from a general electricity transmission and distribution utility and finds justifiable grounds, the minister may extend the period designated under paragraph (1). (4) When a general electricity transmission and distribution utility commences business (when the designation set forth in paragraph (1) has been made by category of service area pursuant to paragraph (2), the business corresponding to the category), it must notify the Minister of Economy, Trade and Industry to that effect without delay.

(Change of Service Area) Article 8 (1) When intending to change the matter set forth in Article 6, paragraph (2), item (v), a general electricity transmission and distribution utility must obtain permission from the Minister of Economy, Trade and Industry. (2) The provisions of Article 5 and the preceding Article apply mutatis mutandis to the permission set forth in the preceding paragraph (excluding the permission under the preceding Article in relation to a reduction of service area).

(Changes of Electric Facilities) Article 9 (1) When intending to make a material change specified by Order of the Ministry of Economy, Trade and Industry with respect to the matters listed in Article 6, paragraph (2), item (vi), a general electricity transmission and distribution utility must notify the Minister of Economy, Trade and Industry of the change. (2) If a change is made to the matters listed in Article 6, paragraph (2), items (ii) through (iv) or the matters listed in item (vi) of the paragraph (excluding those prescribed in the preceding paragraph), a general electricity transmission and distribution utility must notify the Minister of Economy, Trade and Industry to that effect without delay. (3) A general electricity transmission and distribution utility that has given notification pursuant to paragraph (1) must not make the change to which the notification pertained until 20 days have passed from the day when the notification was accepted. (4) If the Minister of Economy, Trade and Industry finds that the content of the notification given under paragraph (1) is unlikely to hinder the appropriate performance of general electricity transmission and distribution by the general electricity transmission and distribution utility that has given the notification, the minister may shorten the period prescribed in the preceding paragraph. (5) When the Minister of Economy, Trade and Industry finds that the content of the notification given under paragraph (1) is likely to hinder the competent performance of general electricity transmission and distribution affairs by the general electricity transmission and distribution utility that has given the notification, the Minister may, within 20 days from the day when the notification was accepted, order the general electricity transmission and distribution utility to change the content of the notification or suspend making the change to which the notification pertained.

(Transfer and Acceptance of Business, and Mergers and Company Splits) Article 10 (1) A transfer and acceptance of all general electricity transmission and distribution affairs is not effective unless approved by the Minister of Economy, Trade and Industry. (2) A merger and company split of a general electricity transmission and distribution utility (limited to those resulting in the succession of all general electricity transmission and distribution affairs; hereinafter the same applies in the following Article) are not effective unless approved by the Minister of Economy, Trade and Industry. (3) The provisions of Article 5 apply mutatis mutandis to the approval set forth in the preceding two paragraphs.

(Succession) Article 11 In the event of a transfer of all general electricity transmission and distribution affairs, or a merger or company split of a general electricity transmission and distribution utility, the stock company to which all general electricity transmission and distribution affairs has been transferred, the stock company surviving after the merger, the stock company newly established upon the merger, or the stock company that has taken over all general electricity transmission and distribution affairs upon the company split succeeds to the status of the general electricity transmission and distribution utility.

Article 12 Deleted

(Transfer of Facilities) Article 13 (1) When intending to transfer facilities used for general electricity transmission and distribution or make them subject to any rights other than ownership, a general electricity transmission and distribution utility must notify the Minister of Economy, Trade and Industry to that effect; provided, however, that this does not apply to facilities specified by Order of the Ministry of Economy, Trade and Industry. (2) The provisions of Article 9, paragraphs (3) through (5) apply mutatis mutandis to the notification set forth in the preceding paragraph. In this case, the phrase "make the change" in paragraph (3) of the Article is deemed to be replaced with "transfer the facilities or make them subject to any rights other than ownership", the phrase "the content of the notification" in paragraph (4) of the Article is deemed to be replaced with "the transfer of the facilities to which the notification pertained or making them subject to any rights other than ownership (hereinafter referred to as 'transfer of facilities, etc.' in the following paragraph)" and the phrase "the content of the notification" in paragraph (5) of the Article is deemed to be replaced with "the transfer of facilities, etc.".

(Suspension and Discontinuation of Business, and Dissolution) Article 14 (1) When intending to suspend or discontinue the all or part of its general electricity transmission and distribution affairs, a general electricity transmission and distribution utility must obtain permission from the Minister of Economy, Trade and Industry. (2) A resolution at a shareholders meeting for the dissolution of a general electricity transmission and distribution utility is not effective unless approved by the Minister of Economy, Trade and Industry. (3) The Minister of Economy, Trade and Industry must not grant permission under paragraph (1) or approval under the preceding paragraph unless the Minister finds that there is no risk of harm to the public interest as a result of the suspension or discontinuation of general electricity transmission and distribution or dissolution of a general electricity transmission and distribution utility.

(Rescission of Business Licenses) Article 15 (1) When a general electricity transmission and distribution utility does not commence business within the period designated under Article 7, paragraph (1) (if the period has been extended under paragraph (3) of the Article, the extended period; the same applies in paragraph (1) of the following Article), the Minister of Economy, Trade and Industry may rescind the license granted under Article 3. (2) beyond the case prescribed in the preceding paragraph, if a general electricity transmission and distribution utility violates this Act or any order issued under this Act and the Minister of Economy, Trade and Industry finds the violation harmful to the public interest, the minister may rescind the license granted under Article 3. (3) If the Minister of Economy, Trade and Industry rescinds the license pursuant to either of the preceding two paragraphs, the minister must provide a written explanation of the reasons for rescission to the general electricity transmission and distribution utility.

Article 16 (1) If a general electricity transmission and distribution utility that has obtained permission under Article 8, paragraph (1) does not commence business within the period designated under Article 7, paragraph (1) as applied mutatis mutandis pursuant to Article 8, paragraph (2), in the new service area, the Minister of Economy, Trade and Industry may rescind the permission. (2) If a general electricity transmission and distribution utility does not conduct general electricity transmission and distribution in part of its service area, and the Minister of Economy, Trade and Industry finds that harmful to the public interest, the minister may remove that part from the service area. (3) The provisions of paragraph (3) of the preceding Article apply mutatis mutandis to the cases referred to in the preceding two paragraphs.

Subsection 2 Services

(Obligation to Provide Wheeling Service) Article 17 (1) A general electricity transmission and distribution utility must not refuse to provide a wheeling service (in the case of a cross-area wheeling service, limited to services for supplying electricity to be used for electricity retail, general electricity transmission and distribution, or specified electricity transmission and distribution or electricity for intra-area wheeling service set forth in Article 2, paragraph (1), item (v), (b), which are specified by Order of the Ministry of Economy, Trade and Industry; the same applies in paragraph (1) of the following Article) in its service area without justifiable grounds. (2) A general electricity transmission and distribution utility must not refuse to provide an electricity quantity adjustment service in its service area unless there is a risk of having to ensure excessive supply capability in order to provide the electricity quantity adjustment service or there are other justifiable grounds. (3) A general electricity transmission and distribution utility must not refuse to provide a last resort service or an isolated island service without justifiable grounds. (4) When a general electricity transmission and distribution utility has been requested by a person who maintains and operates or intends to maintain and operate electric facilities for the generation of electricity to connect the Electric facilities for the generation of electricity with electric lines maintained and operated by the general electricity transmission and distribution utility, it must not refuse the connection unless there is a risk of the electric facilities for the generation of electricity causing electric or magnetic interference with the functioning of the electric lines or there are other justifiable grounds. (5) A general electricity transmission and distribution utility must appropriately and promptly handle complaints and inquiries from the recipients of its last resort service or isolated island service (including a person who intends to receive a last resort service or an isolated island service from the general electricity transmission and distribution utility, and excluding a person who is an electricity utility) with regard to the general electricity transmission and distribution utility's operational procedure for providing the last resort service or the isolated island service or the rates and other supply conditions for the last resort service or the isolated island service provided by the general electricity transmission and distribution utility.

(General Provisions for Wheeling Services) Article 18 (1) Pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, a general electricity transmission and distribution utility must formulate general provisions for a wheeling service and an electricity quantity adjustment service (hereinafter referred to as "wheeling service, etc." in this Article) on rates and other supply conditions for wheeling service, etc. in the service area, and obtain approval for the general provisions from the Minister of Economy, Trade and Industry. The same applies when a general electricity transmission and distribution utility intends to revise the general provisions. (2) A general electricity transmission and distribution utility must not provide a wheeling service, etc. under supply conditions other than those set out in the general provisions for wheeling service, etc. for which approval was granted pursuant to the preceding paragraph (if notification of revision has been given pursuant to paragraph (5) or (8) or if revision has been made pursuant to paragraph (2) of the following Article, the revised general provisions); provided, however, that this does not apply when there are special circumstances that make it difficult for the general electricity transmission and distribution utility to provide the wheeling service, etc. under the general provisions for wheeling service, etc., and the general electricity transmission and distribution utility provides a wheeling service, etc. at rates and other supply conditions approved by the Minister of Economy, Trade and Industry (if revision has been made pursuant to paragraph (2) of the Article, the revised conditions). (3) If the Minister of Economy, Trade and Industry finds that the application for the approval under paragraph (1) conforms to all of the following items, the minister must grant approval under the paragraph: (i) the rates consist of fair costs incurred as a result of efficient management and fair profits; (ii) it is unlikely that the recipients of electricity supply under the general provisions for wheeling service, etc. to which the application for approval under paragraph (1) pertained would experience any serious difficulty in receiving the wheeling service, etc.; (iii) the means of calculation of rates is specified appropriately and clearly; (iv) the responsibilities of the general electricity transmission and distribution utility and the recipients of electricity supply under the general provisions for wheeling service, etc. to which the application for approval under paragraph (1) pertained, as well as the means of sharing expenses between them for electricity meters and works, are provided for appropriately and clearly; (v) certain persons are not treated in an unfair and discriminatory manner; and (vi) beyond what is listed in the preceding items, the promotion of public interest would not be hindered. (4) Notwithstanding the provisions of the second sentence of paragraph (1), if the rates will be lowered or there will be no risk of harm to the interests of electricity users, as specified by Order of the Ministry of Economy, Trade and Industry, a general electricity transmission and distribution utility may revise, pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, the rates and other supply conditions set under general provisions for wheeling service, etc. that have been approved under the paragraph (if notification of revision has been given pursuant to the following paragraph or paragraph (8), the revised provisions; the same applies in paragraph (7)). (5) If a general electricity transmission and distribution utility has revised the rates and other supply conditions pursuant to the preceding paragraph, it must notify the Minister of Economy, Trade and Industry of the revised general provisions for wheeling service, etc. pursuant to provisions by Order of the Ministry of Economy, Trade and Industry. (6) If the Minister of Economy, Trade and Industry finds that the general provisions for wheeling service, etc. to which the notification of revision given under the preceding paragraph pertained fail to fall under any of the following items, the minister may order the general electricity transmission and distribution utility to revise the general provisions for wheeling service, etc., within a reasonable time limit set by the minister: (i) it is unlikely that the recipients of electricity supply under the general provisions for wheeling service, etc. to which the notification of revision given under the preceding paragraph pertained would experience any serious difficulty in receiving the wheeling service, etc.; (ii) the means of calculation of rates is specified appropriately and clearly; (iii) the responsibilities of the general electricity transmission and distribution utility and the recipients of electricity supply under the general provisions for wheeling service, etc. to which the notification of revision given under the preceding paragraph pertained, as well as the means of sharing expenses between them for electricity meters and works, are provided for appropriately and clearly; (iv) certain persons are not treated in an unfair and discriminatory manner; and (v) beyond what is listed in the preceding items, the promotion of public interest would not be hindered. (7) Notwithstanding the provisions of the second sentence of paragraph (1), when a measure should be taken to respond to an increase in the amount of expenses payable under the provisions of other Acts (limited to when it is extremely difficult to curtail the expenses in the course of conducting general electricity transmission and distribution) as specified by Order of the Ministry of Economy, Trade and Industry, a general electricity transmission and distribution utility may revise, pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, the rates and other supply conditions set under general provisions for wheeling service, etc. that have been approved under the paragraph. (8) When intending to revise the rates and other supply conditions pursuant to the preceding paragraph, a general electricity transmission and distribution utility must notify the Minister of Economy, Trade and Industry to that effect and of the revised general provisions for wheeling service, etc. pursuant to provisions by Order of the Ministry of Economy, Trade and Industry. (9) The general provisions for wheeling service, etc. to which the notification given under the preceding paragraph pertained is not effective until 30 days have passed from the day when the notification was accepted. (10) If the Minister of Economy, Trade and Industry finds that the general provisions for wheeling service, etc. to which the notification given under paragraph (8) pertained conform to all of the following items, the minister may shorten the period prescribed in the preceding paragraph: (i) the content of the revision of the rates is necessary and sufficient in light of the purpose of the revision: (ii) it is unlikely that the recipients of electricity supply under the general provisions for wheeling service, etc. to which the notification given under paragraph (8) pertained would experience any serious difficulty in receiving the wheeling service, etc.; (iii) the means of calculation of rates is specified appropriately and clearly; (iv) the responsibilities of the general electricity transmission and distribution utility and the recipients of electricity supply under the general provisions for wheeling service, etc. to which the notification given under paragraph (8) pertained, as well as the means of sharing expenses between them for electricity meters and works, are provided for appropriately and clearly; (v) specific persons are not treated in an unfair and discriminatory manner; and (vi) beyond what is listed in the preceding items, the promotion of public interest would not be hindered. (11) If the Minister of Economy, Trade and Industry finds that the general provisions for wheeling service, etc. to which the notification given under paragraph (8) pertained fail to conform to any of the items of the preceding paragraph, the minister may order, within 30 days from the day when the notification was accepted, the general electricity transmission and distribution utility to revise the general supply provisions. (12) If a general electricity transmission and distribution utility obtains approval for the general provisions for wheeling service, etc. pursuant to paragraph (1), gives notification of revision of the general provisions for wheeling service, etc. pursuant to paragraph (5) or (8), or revises the general provisions for wheeling service, etc. pursuant to paragraph (2) of the following Article, it must publicize the general provisions for wheeling service, etc. pursuant to provisions by Order of the Ministry of Economy, Trade and Industry.

(Orders and Rulings on General Provisions for Wheeling Service) Article 19 (1) If the Minister of Economy, Trade and Industry finds that the rates and other supply conditions have become particularly inappropriate as a result of changes in social and economic circumstances to the extent that they hinder the promotion of public interest, the minister may order the general electricity transmission and distribution utility to apply for approval to revise the general provisions for wheeling service, etc. approved under paragraph (1) of the preceding article (if notification of revision has been given pursuant to paragraph (5) or (8) of the Article, the revised provisions) or the rates and other supply conditions approved under the proviso to paragraph (2) of the Article (if revision has been made pursuant to the following paragraph, the revised general provisions for wheeling service, etc. or the revised rates and conditions), within a reasonable time limit set by the minister. (2) If the Minister of Economy, Trade and Industry issues an order pursuant to the preceding paragraph and no application for approval has been filed within the time limit set forth in the paragraph, it may revise the general provisions for wheeling service, etc. or the rates and other supply conditions.

(General Provisions for Last Resort Service) Article 20 (1) A general electricity transmission and distribution utility must formulate general provisions to set rates and other supply conditions for a last resort service, and notify the Minister of Economy, Trade and Industry of the general provisions pursuant to provisions by Order of the Ministry of Economy, Trade and Industry. The same applies when a general electricity transmission and distribution utility intends to revise the general provisions. (2) A general electricity transmission and distribution utility must not provide a last resort service under supply conditions other than those set out in the general provisions of which notification was given pursuant to the preceding paragraph (hereinafter referred to as "general provisions for last resort service"); provided, however, that this does not apply when there are special circumstances that make it difficult for the general electricity transmission and distribution utility to provide the last resort service under the general provisions for last resort service, and the general electricity transmission and distribution utility provides a last resort service at rates and other supply conditions approved by the Minister of Economy, Trade and Industry. (3) If the Minister of Economy, Trade and Industry finds that general provisions for last resort service fail to fall under any of the following items, the minister may order the general electricity transmission and distribution utility to revise the general provisions for last resort service, within a reasonable time limit set by the minister: (i) the rates are clearly set as fixed rates or fixed amounts by type of supply; (ii) the responsibilities of the general electricity transmission and distribution utility and electricity users, as well as the means of sharing expenses between them for electricity meters and other instruments and for wiring and other works, are provided for appropriately and clearly; (iii) certain persons are not treated in an unfair and discriminatory manner; and (iv) the rates and conditions are not particularly inappropriate in light of social and economic circumstances or significantly harmful to the interest of recipients of electricity supply under the general provisions for last resort service. (4) The provisions of Article 18, paragraph (12) apply mutatis mutandis when a general electricity transmission and distribution utility has given notification of General provisions for last resort service pursuant to paragraph (1).

(General Provisions for Isolated Island Service) Article 21 (1) A general electricity transmission and distribution utility must formulate general provisions to set rates and other supply conditions for an isolated island service, and notify the Minister of Economy, Trade and Industry of the general provisions pursuant to provisions by Order of the Ministry of Economy, Trade and Industry. The same applies when a general electricity transmission and distribution utility intends to revise the general provisions. (2) A general electricity transmission and distribution utility must not provide an isolated island service under supply conditions other than those set out in the general provisions of which notification was given pursuant to the preceding paragraph (hereinafter referred to as "general provisions for isolated island service"); provided, however, that this does not apply when there are special circumstances that make it difficult for the general electricity transmission and distribution utility to provide the isolated island service under the general provisions for isolated island service, and the general electricity transmission and distribution utility provides an isolated island service at rates and other supply conditions approved by the Minister of Economy, Trade and Industry. (3) If the Minister of Economy, Trade and Industry finds that general provisions for isolated island service fail to fall under any of the following items, the minister may order the general electricity transmission and distribution utility to revise the general provisions for isolated island service, within a reasonable time limit set by the minister: (i) the standard of rates is around the same level as the standard of rates of the retail service provided by electricity retailers in the service area (excluding an isolated island); (ii) the rates are clearly set as fixed rates or fixed amounts by type of supply; (iii) the responsibilities of the general electricity transmission and distribution utility and electricity users, as well as the means of sharing expenses between them for electricity meters and other instruments and for wiring and other works, are provided for appropriately and clearly; (iv) certain persons are not treated in an unfair and discriminatory manner; and (v) the supply conditions other than the rates are not particularly inappropriate in light of social and economic circumstances or significantly harmful to the interest of recipients of electricity supply under the general provisions for isolated island service. (4) The provisions of Article 18, paragraph (12) apply mutatis mutandis when a general electricity transmission and distribution utility has given notification of general provisions for isolated island service pursuant to paragraph (1).

(Accounting Concerning General Electricity Transmission and Distribution and Other Services) Article 22 (1) When conducting business other than general electricity transmission and distribution, a general electricity transmission and distribution utility must keep accounts concerning general electricity transmission and distribution and other services for the transformation, transmission and distribution of electricity pursuant to provisions by Order of the Ministry of Economy, Trade and Industry. (2) In the case referred to in the preceding paragraph, the general electricity transmission and distribution utility must publicize the results of the accounting set forth in the paragraph, pursuant to provisions by Order of the Ministry of Economy, Trade and Industry.

(Restrictions on Concurrent Business) Article 22-2 (1) A general electricity transmission and distribution utility must not engage in electricity retail or electricity generation (limited to business for generate electricity to be used for a electricity retail; the same applies in Article 27-11-2, paragraphs (1) and (2) and Article 117-2, item (iv)); provided, however, that if the general electricity transmission and distribution utility obtains approval from the Minister of Economy, Trade and Industry pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry, the utility may engage in electricity retail (limited to business for meeting general demand in its service area; the same applies in the following paragraph) or an electricity generation (limited to business for generating electricity to be used for a electricity retail to meet general demand in its service area; the same applies in the same paragraph). (2) If an application is filed for the approval referred to in the proviso to the preceding paragraph, the Minister of Economy, Trade and Industry must not grant approval unless the minister finds that it is particularly necessary for the general electricity transmission and distribution utility that has filed the application to engage in electricity retail or electricity generation in order to secure the interest of electricity users in its service area, while taking into consideration factors such as the overall capacity of the electric facilities for the transmission and distribution of electricity maintained and operated by the general electricity transmission and distribution utility and the natural and social conditions in the service area. (3) The provisions specified in the following items do not apply to the persons set forth in the respective items; provided, however, that this does not apply if an electricity retailer or electricity generation utility that is a specified related business operator (meaning the specified related business operator prescribed in paragraph (1) of the following Article; the same applies in item (iii)) of a general electricity transmission and distribution utility that has obtained the approval referred to in the proviso to paragraph (1) (hereinafter referred to as an "approved general electricity transmission and distribution utility" in this paragraph) engages in electricity retail (limited to business for meeting general demand in an area other than the service area of the approved general electricity transmission and distribution utility) or electricity generation (limited to business for generating electricity to be used for electricity retail to meet general demand in an area other than the service area of the approved general electricity transmission and distribution utility): (i) the approved general electricity transmission and distribution utility: the provisions of paragraph (2) of the following Article and Article 23, paragraphs (2) through (5); (ii) directors, executive officers, or employees or other workers (hereinafter referred to as "employees") of the approved general electricity transmission and distribution utility: the provisions of paragraph (1) of the following Article; and (iii) a specified related business operator of the approved general electricity transmission and distribution utility: the provisions of Article 23-2, paragraph (1) and Article 23-3, paragraph (1).

(Restrictions on the Concurrent Holding of Positions by Directors or Executive Officers of a General Electricity Transmission and Distribution Utility) Article 22-3 (1) A director or executive officer of a general electricity transmission and distribution utility must not concurrently hold a position as a director, executive officer or any other officer in charge of operating business (hereinafter referred to as a "director, etc." in this paragraph and Article 27-11-3, paragraph (1)) or employee of its specified related business operator (meaning an electricity retailer or electricity generation utility that is a subsidiary company (meaning the subsidiary company prescribed in Article 2, item (iii) of the Companies Act; the same applies hereinafter) or parent company (meaning the parent company prescribed in item (iv) of the same Article; hereinafter the same applies in this paragraph and Article 27-11-3, paragraph (1)) of a general electricity transmission and distribution utility or a subsidiary company, etc. (meaning the subsidiary company, etc. prescribed in Article 2, item (iii)-2 of the same Act; the same applies hereinafter) of the parent company other than the general electricity transmission and distribution utility, or a business operator that satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one that is found to have effective control over the management of the electricity retailer or electricity generation utility; hereinafter the same applies in this Subsection), and an employee of a general electricity transmission and distribution utility must not concurrently hold a position as a director, etc. of its specified related business operator; provided, however, that this does not apply if the concurrent holding of positions poses no risk of impairing the proper competitive relationship among persons who supply electricity (hereinafter referred to as "electricity suppliers"), as specified by Order of the Ministry of Economy, Trade and Industry. (2) A general electricity transmission and distribution utility must not assign an employee of its specified related business operator specified in the following items for each of the specified related business operators set forth in the respective items to engage in, among the service of the general electricity transmission and distribution and other services for the transformation, transmission and distribution of electricity conducted by the general electricity transmission and distribution utility, the services specified by Order of the Ministry of Economy, Trade and Industry as those for which it is particularly necessary to ensure operational neutrality in order to ensure the proper competitive relationship among electricity suppliers (referred to as the "specified electricity transmission and distribution service" in Article 23-2, paragraph (1)); provided, however, that this does not apply if the assignment of the employee poses no risk of impairing the proper competitive relationship among electricity suppliers, as specified by Order of the Ministry of Economy, Trade and Industry: (i) electricity retailer: an employee who satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one who plays an important role in electricity retail operations; (ii) electricity generation utility: an employee who satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one who plays an important role in electricity generation operations; and (iii) a business operator that satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as referred to in the main clause of the preceding paragraph; an employee who satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one who plays an important role in the business management operations of the electricity retailer or electricity generation utility whose management is found to be under effective control of the business operator. (3) The Minister of Economy, Trade and Industry may order a general electricity transmission and distribution utility or its specified related business operator, if a director, executive officer or employee of the general electricity transmission and distribution utility violates paragraph (1), and a general electricity transmission and distribution utility, if the general electricity transmission and distribution utility violates the preceding paragraph, to take the necessary measures to rectify the violation.

(Actions a General Electricity Transmission and Distribution Utility is Prohibited to Conduct) Article 23 (1) A general electricity transmission and distribution utility must not conduct any of the following: (i) using information concerning other electricity suppliers and electricity users which the general electricity transmission and distribution utility has become aware of in the course of providing a wheeling service and an electricity quantity adjustment service, or providing another person with the information, for purposes other than using it for these services and the service of supplying electricity from renewable energy sources prescribed in Article 2, paragraph (2) of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (Act No. 108 of 2011) which is to be procured under a specified contract prescribed in paragraph (5) of the same Article; (ii) applying unreasonable preferential treatment or giving benefits, or applying unreasonable disadvantageous treatment or creating disadvantage for any particular electric supplier, in the course of providing a wheeling service and an electricity quantity adjustment service and other services for the transformation, transmission and distribution of electricity; and (iii) beyond what is set forth in the preceding two items, conducting an act specified by Order of the Ministry of Economy, Trade and Industry as an act that impairs the proper competitive relationship among electricity suppliers. (2) A general electricity transmission and distribution utility must not conduct a transaction with its specified related business operator or any other business operator that has a special relationship specified by Order of the Ministry of Economy, Trade and Industry with the general electricity transmission and distribution utility (referred to as a "specified related business operator, etc. of a general electricity transmission and distribution utility" in Article 106, paragraph (5)), under terms and conditions that are different from ordinary terms and conditions and that are likely to impair the proper competitive relationship among electricity suppliers; provided, however, that this does not apply if the utility has an unavoidable reason for conducting the transaction and obtains approval from the Minister of Economy, Trade and Industry in advance. (3) A general electricity transmission and distribution utility must not entrust its services for the transformation, transmission and distribution of electricity including wheeling service and electricity quantity adjustment service to its specified related business operator or a subsidiary company, etc. of the specified related business operator (excluding one that is a specified related business operator); provided, however, that this does not apply if the entrustment of services poses no risk of impairing the proper competitive relationship among electricity suppliers, as specified by Order of the Ministry of Economy, Trade and Industry. (4) A general electricity transmission and distribution utility must not entrust its last resort service or isolated island service to an electricity retailer or electricity generation utility that is its specified related business operator, without publicly inviting applicants to undertake these services pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry; provided, however, that this does not apply if the entrustment of services poses no risk of impairing the proper competitive relationship among electricity suppliers, as specified by Order of the Ministry of Economy, Trade and Industry. (5) A general electricity transmission and distribution utility must not undertake electricity retail or electricity generation services of the electricity retailer or electricity generation utility that is the specified related business operator; provided, however, that this does not apply if the undertaking of service poses no risk of impairing the proper competitive relationship among electricity suppliers, as specified by Order of the Ministry of Economy, Trade and Industry. (6) If the Minister of Economy, Trade and Industry finds that a general electricity transmission and distribution utility has conducted an action in violation of any of the preceding paragraphs, the minister may order the general electricity transmission and distribution utility to discontinue or correct that action.

(Restriction on Assignment of an Employee of a General Electricity Transmission and Distribution Utility to Engage in Work as an Employee of a Specified Related Business Operator of the General Electricity Transmission and Distribution Utility by the Specified Related Service Provider) Article 23-2 (1) A specified related business operator of a general electricity transmission and distribution utility set forth in each of the following items must not assign an employee who engages in the specified electricity transmission and distribution service conducted by the general electricity transmission and distribution utility to engage in work as an employee specified in the respective items; provided, however, that this does not apply if such assignment of an employee poses no risk of impairing the proper competitive relationship among electricity suppliers, as specified by Order of the Ministry of Economy, Trade and Industry: (i) electricity retailer: an employee who satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one who plays an important role in electricity retail operations; (ii) electricity generation utility: an employee who satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one who plays an important role in electricity generation operations; and (iii) a business operator that satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as referred to in the main clause of Article 22-3, paragraph (1); an employee who satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one who plays an important role in the business management operations of the electricity retailer or electricity generation utility whose management is found to be under effective control of the business operator. (2) If a specified related business operator of a general electricity transmission and distribution utility violates the preceding paragraph, the Minister of Economy, Trade and Industry may order the specified related business operator of the general electricity transmission and distribution utility to take the necessary measures to rectify the violation.

(Actions Specified Related Business Operator of a General Electricity Transmission and Distribution Utility Are Prohibited from Conducting) Article 23-3 (1) A specified related business operator of a general electricity transmission and distribution utility must not conduct any of the following: (i) demanding that the general electricity transmission and distribution utility conduct any of the acts set forth in the items of Article 23, paragraph (1) or the main clause of paragraph (2), the main clause of paragraph (3), the main clause of paragraph (4) or the main clause of paragraph (5) of the same Article, or requesting the utility to conduct any of these acts; and (ii) beyond what is set forth in the preceding item, conducting an act specified by Order of the Ministry of Economy, Trade and Industry as an act that impairs the proper competitive relationship among electricity suppliers. (2) If the Minister of Economy, Trade and Industry finds that a specified related business operator of a general electricity transmission and distribution utility has conducted an action in violation of the preceding paragraph, the minister may order the specified related business operator of the general electricity transmission and distribution utility to discontinue or correct that act.

(Development of Systems for Ensuring Proper Competitive Relationship Among Electricity Suppliers) Article 23-4 (1) A general electricity transmission and distribution utility must develop systems for the proper management of information that it has become aware of in connection with a wheeling service and electricity quantity adjustment service and any other information concerning the service of its general electricity transmission and distribution and for the appropriate monitoring of the implementation status of the wheeling service and electricity quantity adjustment service, and take other necessary measures to ensure the proper competitive relationship among electricity suppliers, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry. (2) A general electricity transmission and distribution utility must report the measures it has taken pursuant to the preceding paragraph, to the Minister of Economy, Trade and Industry, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry every year.

(Electricity Supply via Electric Lines Installed Outside Service Areas) Article 24 (1) When intending to install electric lines that it is to independently maintain and operate in an area other than its service area and supply electricity via the electric lines, a general electricity transmission and distribution utility must obtain a license from the Minister of Economy, Trade and Industry for each place where electricity is to be supplied; provided, however, that this does not apply when a general electricity transmission and distribution utility supplies electricity to be used for general electricity transmission and distribution, or provides a cross-area wheeling service (limited to services for supplying electricity to be used for electricity retail, general electricity transmission and distribution, or specified electricity transmission and distribution or electricity for intra-area wheeling service set forth in Article 2, paragraph (1), item (v), (b)). (2) The Minister of Economy, Trade and Industry must not grant a license under the preceding paragraph unless the Minister finds that the application for the license under the paragraph conforms to all of the following items: (i) the supply of electricity is intended to meet demand in the service area of another general electricity transmission and distribution utility, it is not easy or appropriate for that other general electricity transmission and distribution utility to supply electricity in that area; and (ii) the supply of electricity is unlikely to significantly harm the interests of electricity users in the service area of the general electricity transmission and distribution utility that is intending to supply electricity.

(Seeking Consultation with Specified Electricity Transmission and Distribution Utilities) Article 25 (1) If a general electricity transmission and distribution utility needs new electric lines for conducting general electricity transmission and distribution and if it finds that installation of the electric lines is likely to significantly harm the interests of electricity users in the service area and, in order to prevent that harm, the general electricity transmission and distribution utility needs to conduct the general electricity transmission and distribution by receiving a wheeling service from a specified electricity transmission and distribution utility, the general electricity transmission and distribution utility may seek consultation with the specified electricity transmission and distribution utility about providing it with a wheeling service. (2) If parties fail to consult as set forth in the preceding paragraph or reach an agreement through consultation, either party may apply for a ruling by the Minister of Economy, Trade and Industry; provided, however, that this does not apply after either party has applied for arbitration under Article 36, paragraph (1). (3) If the Minister of Economy, Trade and Industry accepts an application for ruling filed under the preceding paragraph, the minister must notify the other party to that effect and provide that party with the opportunity to submit a written answer within a designated period. (4) If the Minister of Economy, Trade and Industry issues a ruling pursuant to paragraph (2), the minister must notify the parties concerned to that effect without delay. (5) If a ruling award has been issued pursuant to paragraph (2), it is deemed that the parties concerned have reached an agreement through consultation as determined by the award.

(Voltage and Frequency) Article 26 (1) A general electricity transmission and distribution utility must endeavor to maintain the voltage value and frequency value of the electricity that the general electricity transmission and distribution utility supplies at the levels specified by Order of the Ministry of Economy, Trade and Industry. (2) If the Minister of Economy, Trade and Industry finds that the interest of electricity users is harmed because the voltage value or frequency value of the electricity supplied by a general electricity transmission and distribution utility is not maintained at the levels specified by Order of the Ministry of Economy, Trade and Industry under the preceding paragraph, the minister may order the general electricity transmission and distribution utility to repair or alter the electric facilities, improve the means of operating the electric facilities, and take other necessary measures in order to maintain the specified levels. (3) Pursuant provisions by Order of the Ministry of Economy, Trade and Industry, a general electricity transmission and distribution utility must measure the voltage and frequency of the electricity that the general electricity transmission and distribution utility supplies, record the values measured, and preserve the records.

(Business Improvement Orders) Article 27 (1) If a general electricity transmission and distribution utility fails to make necessary repairs or take other measures immediately to eliminate any stoppage in electricity supply arising from an accident or when the Minister of Economy, Trade and Industry finds that the protection of the interests of electricity users or the sound development of electricity business is hindered or likely to be hindered because an operation of general electricity transmission and distribution is inappropriate, the minister may order the general electricity transmission and distribution utility to take measures necessary for the improvement of general electricity transmission and distribution to the extent necessary to secure the interest of electricity users or public interest. (2) If a general electricity transmission and distribution utility has violated Article 17, paragraph (5), the Minister of Economy, Trade and Industry may order the general electricity transmission and distribution utility to take necessary measures to improve its operational procedure.

Subsection 3 Accounting and Finance

(Keeping of Accounts) Article 27-2 (1) Pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, a general electricity transmission and distribution utility must keep accounts by establishing its business year and classification of items of accounts, as well as forms of balance sheets, profit and loss statements, and other statements on finance and accounting. (2) Pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, a general electricity transmission and distribution utility must submit statements on finance and accounting prescribed in the preceding paragraph to the Minister of Economy, Trade and Industry after the end of each business year.

(Depreciation) Article 27-3 If the Minister of Economy, Trade and Industry finds it particularly necessary in order to ensure the competent performance of general electricity transmission and distribution, the minister may order the general electricity transmission and distribution utility to record a reasonable amount of depreciation of fixed assets used for general electricity transmission and distribution by specifying a means or amount or to set aside reserves or allowances by specifying a means or amount.

Section 3 Electricity Transmission

(Business Licenses) Article 27-4 A person who intends to conduct electricity transmission must obtain a license from the Minister of Economy, Trade and Industry.

(Application for License) Article 27-5 (1) A person who intends to obtain a license under the preceding Article must submit a written application to the Minister of Economy, Trade and Industry, stating the following matters: (i) the trade name and address of the applicant; (ii) the names of directors (or the names of directors and executive officers in the case of a company with nominating committee, etc.; the same applies in Article 27-7, paragraph (2), item (iii)); (iii) the names and locations of the principal business office and any other business office of the applicant; (iv) the general electricity transmission and distribution utility to which the cross-area wheeling service is to be provided; and (v) the following matters concerning the electric facilities to be used for electricity transmission: (a) regarding electric facilities for transmission of electricity, the site where they are to be installed, the electric system, means of installation, number of circuits, frequency, and voltage; and (b) regarding electric facilities for the transformation of electricity, the site where they are to be installed, frequency, and output capacity. (2) The written application set forth in the preceding paragraph must be accompanied by a business plan, estimate of business income and expenditure, and other documents specified by Order of the Ministry of Economy, Trade and Industry.

(Standards for Licenses) Article 27-6 The Minister of Economy, Trade and Industry must not grant a license under Article 27-4 unless the minister finds that the application for the license under the Article conforms to all of the following items: (i) the commencement of electricity transmission corresponds to demand for general electricity transmission and distribution; (ii) the applicant has a sufficient financial basis and technical capability to perform electricity transmission appropriately; (iii) electricity transmission is based on a reliable plan; (iv) if the electric facilities to be used for electricity transmission are located within the service area of a general electricity transmission and distribution utility, there is no risk of harm to the interests of electricity users within the general electricity transmission and distribution utility's service area as a result of the commencement of the business; and (v) beyond what is listed in the preceding items, the commencement of electricity transmission is necessary and appropriate for the comprehensive and reasonable development of electricity business and for the promotion of other public interests.

(License Certificates) Article 27-7 (1) When the Minister of Economy, Trade and Industry grants a license under Article 27-4, the minister is to issue a license certificate. (2) The license certificate must state the following matters: (i) the date of granting of the license and the license number; (ii) the trade name and address of the licensee; (iii) the names of directors; (iv) the names and locations of the principal business office and any other business office of the licensee; (v) the general electricity transmission and distribution utility to which the cross-area wheeling service is to be provided; and (vi) the following matters concerning the electric facilities to be used for electricity transmission: (a) regarding electric facilities for the transmission of electricity, the site where they are to be installed, the electric system, means of installation, number of circuits, frequency, and voltage; and (b) regarding electric facilities for the transformation of electricity, the site where they are to be installed, frequency, and output capacity.

(Rescission of Business Licenses) Article 27-8 (1) If an electricity transmission utility does not commence business within the period designated under Article 7, paragraph (1) as applied mutatis mutandis pursuant to Article 27-12 (if the period has been extended under Article 7, paragraph (3), the extended period; the same applies in paragraph (1) of the following Article), the Minister of Economy, Trade and Industry may rescind the license granted under Article 27-4. (2) beyond the case prescribed in the preceding paragraph, if an electricity transmission utility has violated this Act or any order issued under this Act, and the Minister of Economy, Trade and Industry finds the violation harmful to the public interest, the minister may rescind the license granted under Article 27-4. (3) Beyond the cases prescribed in the preceding two paragraphs, if the electric facilities used for electricity transmission by an electricity transmission utility have ceased to satisfy the requirements specified by Order of the Ministry of Economy, Trade and Industry under Article 2, paragraph (1), item (x), and the Minister of Economy, Trade and Industry finds that the facilities will never satisfy the requirements, the minister may rescind the license granted under Article 27-4. (4) If the Minister of Economy, Trade and Industry rescinds the license pursuant to any of the preceding three paragraphs, the minister must provide a written explanation of the reasons for rescission to the electricity transmission utility.

Article 27-9 (1) If an electricity transmission utility that has obtained permission under Article 8, paragraph (1) as applied mutatis mutandis pursuant to Article 27-12 does not commence business with respect to the general electricity transmission and distribution utility to which the cross-area wheeling service is to be newly provided within the period designated under Article 7, paragraph (1) as applied mutatis mutandis pursuant to Article 27-12, the Minister of Economy, Trade and Industry may rescind the permission. (2) The provisions of paragraph (4) of the preceding Article apply mutatis mutandis to the case set forth in the preceding paragraph.

(Obligation to Provide Cross-Area Wheeling Services) Article 27-10 (1) An electricity transmission utility that has agreed to provide a cross-area wheeling service to a general electricity transmission and distribution utility must not refuse to provide the cross-area wheeling service without justifiable grounds. (2) When an electricity transmission utility has been requested by a person who maintains and operates or intends to maintain and operate electric facilities for generation of electricity to electrically connect the electric facilities for generation of electricity with electric lines maintained and operated by the electricity transmission utility, it must not refuse to provide the connection unless there is a risk of the electric facilities for generation of electricity causing electric or magnetic interference with the functioning of the electric lines or there are other justifiable grounds.

(Cross-Area Wheeling Services) Article 27-11 (1) Pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, an electricity transmission utility must notify the Minister of Economy, Trade and Industry of the rates and other supply conditions for the cross-area wheeling service to be provided to a general electricity transmission and distribution utility (limited to a service the contract for which satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry; the same applies in the following paragraph and paragraph 3, item (i)). The same applies when an electricity transmission utility intends to revise the rates and other supply conditions. (2) An electricity transmission utility must not provide a cross-area wheeling service to a general electricity transmission and distribution utility at rates and other supply conditions other than those of which notification was given pursuant to the preceding paragraph. (3) If the Minister of Economy, Trade and Industry finds that the rates and other supply conditions to which the notification given under paragraph (1) pertained fail to fall under any of the following items, the minister may order the electricity transmission utility to revise the rates and supply conditions within a reasonable time limit set by the minister: (i) it is unlikely that the general electricity transmission and distribution utility receiving electricity supply under the rates and other supply conditions to which the notification given under paragraph (1) pertained would experience any difficulty in receiving the cross-area wheeling service; (ii) the rates are clearly set as fixed rates or fixed amounts; (iii) the responsibilities of the electricity transmission utility and the general electricity transmission and distribution utility receiving electricity supply under the rates and other supply conditions to which the notification given under paragraph (1) pertained, as well as the means of sharing expenses between them for electricity meters and works, are provided for appropriately and clearly; (iv) certain persons are not treated in an unfair and discriminatory manner; and (v) beyond what is listed in the preceding items, the promotion of public interest would not be hindered. (4) If an electricity transmission utility has refused to provide a cross-area wheeling service to a general electricity transmission and distribution utility without justifiable grounds, the Minister of Economy, Trade and Industry may order the electricity transmission utility to provide a cross-area wheeling service.

(Restrictions on Concurrent Business) Article 27-11-2 (1) An electricity transmission utility must not engage in electricity retail or electricity generation; provided, however, that this does not apply if the electricity transmission utility obtains approval from the Minister of Economy, Trade and Industry pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry. (2) If an application is filed for the approval referred to in the proviso to the preceding paragraph, the Minister of Economy, Trade and Industry must not grant approval unless the minister finds that it is particularly necessary for the electricity transmission utility that has filed the application to engage in electricity retail or electricity generation in order to secure the interest of electricity users in its service area, while taking into consideration factors such as the overall capacity of the electric facilities for the transmission of electricity maintained and operated by the electricity transmission utility and the site where they are installed. (3) The provisions specified in the following items do not apply to the persons set forth in the respective items: (i) an electricity transmission utility that has obtained approval as referred to in the proviso to paragraph (1) (hereinafter referred to as the "approved electricity transmission utility" in this paragraph): the provisions of paragraph (2) of the following Article and Article 27-11-4, paragraphs (2) through (4); (ii) directors, executive officers or employees of the approved electricity transmission utility: the provisions of paragraph (1) of the following Article; and (iii) a specified related business operator (meaning the specified related business operator prescribed in paragraph (1) of the following Article) of the approved electricity transmission utility: the provisions of Article 27-11-5, paragraph (1) and Article 27-11-6, paragraph (1).

(Restriction on Concurrent Holding of Positions by Directors or Executive Officers of an Electricity Transmission Utility) Article 27-11-3 (1) A director or executive officer of an electricity transmission utility must not concurrently hold a position as a director, etc. or employee of its specified related business operator (meaning an electricity retailer or electricity generation utility that is a subsidiary company or parent company of an electricity transmission utility or a subsidiary company, etc. of the parent company other than the electricity transmission utility, or a business operator that satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one that is found to have effective control over the management of the electricity retailer or electricity generation utility; hereinafter the same applies in this Section); provided, however, that this does not apply if the concurrent holding of positions poses no risk of impairing the proper competitive relationship among electricity suppliers, as specified by Order of the Ministry of Economy, Trade and Industry. (2) An electricity transmission utility must not assign an employee of its specified related business operator specified in the following items for each of the specified related business operators set forth in the respective items to engage in, among the service of the electricity transmission and other services for the transformation and transmission of electricity conducted by the electricity transmission utility, the services specified by Order of the Ministry of Economy, Trade and Industry as those for which it is particularly necessary to ensure operational neutrality in order to ensure the proper competitive relationship among electricity suppliers (referred to as the "specified electricity transmission service" in Article 27-11-5, paragraph (1)); provided, however, that this does not apply if the assignment of the employee poses no risk of impairing the proper competitive relationship among electricity suppliers, as specified by Order of the Ministry of Economy, Trade and Industry: (i) electricity retailer: an employee who satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one who plays an important role in electricity retail operations; (ii) electricity generation utility: an employee who satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one who plays an important role in the electricity generation operations and services; and (iii) a business operator that satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as referred to in the main clause of the preceding paragraph; an employee who satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one who plays an important role in the business management operations of the electricity retailer or electricity generation utility whose management is found to be under effective control of the business operator. (3) The Minister of Economy, Trade and Industry may order an electricity transmission utility or its specified related business operator, if a director, executive officer or employee of the electricity transmission utility violates paragraph (1), and an electricity transmission utility, if the electricity transmission utility violates the preceding paragraph, to take necessary measures to rectify the violation.

(Actions an Electricity Transmission Utility is Prohibited from Conducting) Article 27-11-4 (1) An electricity transmission utility must not conduct any of the following acts: (i) using information concerning other electricity suppliers and electricity users which the electricity transmission utility has become aware of in connection with a cross-area wheeling service, or providing another person with the information, for purposes other than using it for the service; (ii) applying unreasonable preferential treatment or giving benefits, or applying unreasonable disadvantageous treatment or creating disadvantage to any particular electric supplier, in the course of providing a cross-area wheeling service and other services for the transformation and transmission of electricity;. and (iii) beyond what is set forth in the preceding two items, conducting an act specified by Order of the Ministry of Economy, Trade and Industry as an act that impairs the proper competitive relationship among electricity suppliers. (2) An electricity transmission utility must not conduct a transaction with its specified related business operator or any other business operator that has a special relationship specified by Order of the Ministry of Economy, Trade and Industry with the electricity transmission utility (referred to as a "specified related business operator, etc. of an electricity transmission utility" in Article 106, paragraph (5)), under terms and conditions that are different from ordinary terms and conditions and that are likely to impair the proper competitive relationship among electricity suppliers; provided, however, that this does not apply if the utility has an unavoidable reason for conducting the transaction and obtains approval from the Minister of Economy, Trade and Industry in advance. (3) An electricity transmission utility must not entrust its services for the transformation and transmission of electricity including the cross-area wheeling service to its specified related business operator or a subsidiary company, etc. of the specified related business operator (excluding one that is a specified related business operator); provided, however, that this does not apply if the entrustment of services poses no risk of impairing the proper competitive relationship among electricity suppliers, as specified by Order of the Ministry of Economy, Trade and Industry. (4) An electricity transmission utility must not undertake electricity retail or electricity generation services from the electricity retailer or electricity generation utility that is its specified related business operator operating that service; provided, however, that this does not apply if the undertaking of service poses no risk of impairing the proper competitive relationship among electricity suppliers, as specified by Order of the Ministry of Economy, Trade and Industry. (5) If the Minister of Economy, Trade and Industry finds that an electricity transmission utility has conducted an action in violation of any of the preceding paragraphs, the minister may order the electricity transmission utility to discontinue or correct that act.

(Restrictions on Assignments of an Employee of an Electricity Transmission Utility to Engage in Work as an Employee of a Specified Related Business Operator of the Electricity Transmission Utility by the Specified Related Business Operator) Article 27-11-5 (1) A specified related business operator of an Electricity Transmission Utility set forth in each of the following items must not assign an employee who engages in the Specified Electricity Transmission Service conducted by the Electricity Transmission Utility to engage in work as an employee specified in the respective items; provided, however, that this does not apply if the assignment of the employee poses no risk of impairing the proper competitive relationship among Electricity Suppliers, as specified by Order of the Ministry of Economy, Trade and Industry: (i) electricity retailer: an employee who satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one who plays an important role in the operations of the electricity retail; (ii) electricity generation utility: an employee who satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one who plays an important role in electricity generation operations; and (iii) a business operator that satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as referred to in the main clause of Article 27-11-3, paragraph (1); an employee who satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one who plays an important role in the business management operations of the electricity retailer or electricity generation utility whose management is found to be under effective control of the business operator. (2) If a specified related business operator of an electricity transmission utility violates the preceding paragraph, the Minister of Economy, Trade and Industry may order the specified related business operator of the electricity transmission utility to take necessary measures to rectify the violation.

(Actions a Specified Related Business Operator of an Electricity Transmission Utility is Prohibited from Conducting) Article 27-11-6 (1) A specified related business operator of an electricity transmission utility must not conduct any of the following: (i) demanding that the electricity transmission utility conduct any of the acts set forth in the items of Article 27-11-4, paragraph (1) or the main clause of paragraph (2), the main clause of paragraph (3) or the main clause of paragraph (4) of the same Article, or requesting the utility to conduct any of these acts; and (ii) beyond what is set forth in the preceding item, conducting an act specified by Order of the Ministry of Economy, Trade and Industry as an act that impairs the proper competitive relationship among electricity suppliers. (2) If the Minister of Economy, Trade and Industry finds that a specified related business operator of an electricity transmission utility has conducted an action in violation of the preceding paragraph, the minister may order the specified related business operator of the electricity transmission utility to discontinue or correct that act.

(Application Mutatis Mutandis) Article 27-12 The provisions of Articles 6-2 through 11, Article 13, Article 14, Article 22, Article 23-4, Article 27, paragraph (1), Article 27-2, and Article 27-3 apply mutatis mutandis to an electricity transmission utility. In this case, the term "service area" in Article 7, paragraphs (2) and (4) and Article 8, paragraph (2) is deemed to be replaced with "general electricity transmission and distribution utility to which the cross-area wheeling service is to be provided", the term "Article 6, paragraph (2), item (v)" in Article 8, paragraph (1) is deemed to be replaced with "Article 27-7, paragraph (2), item (v)", the term "Article 5" in Article 8, paragraph (2) and Article 10, paragraph (3) is deemed to be replaced with "Article 27-6", the term "Article 6, paragraph (2), item (vi)" in Article 9, paragraph (1) is deemed to be replaced with "Article 27-7, paragraph (2), item (vi)", the phrase "Article 6, paragraph (2), items (ii) through (iv)" in Article 9, paragraph (2) is deemed to be replaced with "Article 27-7, paragraph (2), items (ii) through (iv)", the phrase ", transmission and distribution" in Article 22, paragraph (1) is deemed to be replaced with "and transmission", and the phrase "a wheeling service and an electricity quantity adjustment service" in the items of Article 23-4, paragraph (1) is deemed to be replaced with "a cross-area wheeling service".

Section 4 Specified Electricity Transmission and Distribution

(Notification of Business) Article 27-13 (1) A person who intends to conduct specified electricity transmission and distribution must notify the Minister of Economy, Trade and Industry of the following matters pursuant to provisions by Order of the Ministry of Economy, Trade and Industry: (i) the name and address of the applicant, as well as the name of the representative if the applicant is a corporation; (ii) the names and locations of the principal business office and any other business office of the applicant; (iii) the service points; (iv) the following matters concerning the electric facilities to be used for specified electricity transmission and distribution: (a) regarding electric facilities for the transmission of electricity, the site where they are to be installed, the electric system, means of installation, number of circuits, frequency, and voltage; (b) regarding electric facilities for distribution of electricity, the site where they are to be installed, the electric system, frequency, and voltage; (c) regarding electric facilities for transformation of electricity, the site where they are to be installed, frequency, and output capacity; and (d) regarding electric facilities for generation of electricity, the site where they are to be installed, the type of motive power, frequency, and output capacity; (v) the scheduled date of commencement of business; and (vi) other matters specified by Order of the Ministry of Economy, Trade and Industry. (2) The notification given under the preceding paragraph must be accompanied by documents specified by Order of the Ministry of Economy, Trade and Industry. (3) The person who has given notification pursuant to paragraph (1) must not use the electric facilities to which the notification pertained for specified electricity transmission and distribution until 20 days have passed from the day when the notification was accepted. (4) If the Minister of Economy, Trade and Industry finds that use of the electric facilities to which the notification given under paragraph (1) pertained for specified electricity transmission and distribution is unlikely to significantly harm the interests of electricity users in the service area of a general electricity transmission and distribution utility that covers the service points to which the notification pertained, the minister may shorten the period prescribed in the preceding paragraph. (5) If the Minister of Economy, Trade and Industry finds that use of the electric facilities to which the notification given under paragraph (1) pertained for specified electricity transmission and distribution is likely to significantly harm the interests of electricity users in the service area of the general electricity transmission and distribution utility prescribed in the preceding paragraph, the minister may order, within 20 days from the day when the notification was accepted (if the period prescribed in paragraph (3) has been extended pursuant to the following paragraph, within the extended period), the person who has given the notification to change the content of the notification or suspend its performance of the specified electricity transmission and distribution to which the notification pertained. (6) If the Minister of Economy, Trade and Industry has reasonable grounds for believing that it will take a considerable period of time to examine whether or not use of the electric facilities to which the notification given under paragraph (1) pertained for specified electricity transmission and distribution is likely to significantly harm the interests of electricity users in the service area of the general electricity transmission and distribution utility prescribed in paragraph (4) and that the examination will not be completed within the period prescribed in paragraph (3), the minister may extend the period set forth in the same paragraph by up to 20 days. In this case, the Minister of Economy, Trade and Industry must notify the person who has given the notification of the extended period and the reason for extension without delay. (7) If a specified electricity transmission and distribution utility intends to change the matters set forth in paragraph (1), item (iii) or (iv), it must notify the Minister of Economy, Trade and Industry to that effect in advance pursuant to provisions by Order of the Ministry of Economy, Trade and Industry. (8) The provisions of paragraphs (2) through (6) apply mutatis mutandis to the notification under the preceding paragraph. In this case, the phrase "must not use the electric facilities to which the notification pertained for specified electricity transmission and distribution until 20 days have passed from the day when the notification was received" in paragraph (3) is deemed to be replaced with "must not change the electric facilities to which the notification pertained until 20 days have passed from the day when the notification was received; provided, however, that this does not apply to a minor change specified by Order of the Ministry of Economy, Trade and Industry" and the phrase "use of the electric facilities to which the notification given under paragraph (1) pertained for specified electricity transmission and distribution" in paragraphs (4) through (6) is deemed to be replaced with "the change to which the notification given under paragraph (1) pertained". (9) If there is a change to the matters listed in paragraph (1), item (i), (ii), (v) or (vi), the specified electricity transmission and distribution utility must notify the Minister of Economy, Trade and Industry to that effect without delay pursuant to provisions by Order of the Ministry of Economy, Trade and Industry.

(Obligation to Provide Wheeling Services) Article 27-14 A specified electricity transmission and distribution utility that agrees to provide an electricity retailer or a general electricity transmission and distribution utility with a wheeling service for supplying electricity to be used for electricity retail or general electricity transmission and distribution must not refuse to provide the wheeling service without justifiable grounds.

(Registration of Retail Services) Article 27-15 A specified electricity transmission and distribution utility that intends to provide a retail service by using electric facilities for the transmission of electricity and for distribution of electricity that it independently maintains and operates must be registered by the Minister of Economy, Trade and Industry.

(Application for Registration) Article 27-16 (1) A specified electricity transmission and distribution utility that intends to be registered under the preceding paragraph must submit a written application to the Minister of Economy, Trade and Industry, stating the following matters, pursuant to provisions by Order of the Ministry of Economy, Trade and Industry: (i) the name and address of the applicant, as well as the name of the representative if the applicant is a corporation; (ii) the names and locations of the principal business office and any other business office of the applicant; (iii) the service points; (iv) matters concerning ensuring the supply capability expected to be required for meeting the electricity demand of the recipient of the retail service; (v) the scheduled date of commencement of the retail service; and (vi) other matters specified by Order of the Ministry of Economy, Trade and Industry. (2) The written application set forth in the preceding paragraph must be accompanied by a document pledging that the applicant does not fall under any of the items of Article 17-18, paragraph (1) (excluding item (iv)), documents stating the matters concerning the development of a system for performing the retail service appropriately and reliably, and any other documents specified by Order of the Ministry of Economy, Trade and Industry.

(Execution of Registration) Article 27-17 (1) When an application for registration under Article 27-15 has been filed, the Minister of Economy, Trade and Industry must register the following matters in the registry of specified electricity transmission and distribution utilities providing retail services, except when refusing to register pursuant to paragraph (1) of the following Article: (i) matters listed in the items of paragraph (1) of the preceding Article (excluding item (vi)); and (ii) the date of registration and registration number. (2) When the Minister of Economy, Trade and Industry completes registration under the preceding paragraph, the minister must notify the applicant to that effect without delay.

(Refusal of Registration) Article 27-18 (1) If a specified electricity transmission and distribution utility that has submitted a written application set forth in Article 27-16, paragraph (1) falls under any of the following items, or if the written application or any of the documents accompanying it contains a false statement of an important matter or lacks a statement of an important fact, the Minister of Economy, Trade and Industry must refuse to register the applicant: (i) a person who is subject to a fine or more severe punishment for violation of this Act or any order issued under this Act, if two years have not passed since the person finished serving the sentence or ceased to be subject to its enforcement; (ii) a person whose registration was rescinded pursuant to Article 27-21, paragraph (1), if two years have not passed since the date of rescission; (iii) a corporation, any of whose officers falls under any of the preceding two items; and (iv) a person who is expected to be unlikely to be able to ensure the supply capability required for meeting the electricity demand of the recipients of the retail service, or any other person who is found to be unsuitable for the protection of the interest of electricity users. (2) If the Minister of Economy, Trade and Industry refuses to register a person pursuant to the preceding paragraph, the minister must send a document stating the reasons for the refusal to the person who filed the written application.

(Registration of Change) Article 27-19 (1) If a specified electricity transmission and distribution utility registered under Article 27-15 (hereinafter referred to as a "registered specified electricity transmission and distribution utility") intends to change the matter set forth in Article 27-16, paragraph (1), item (iv), it must obtain registration of change from the Minister of Economy, Trade and Industry; provided, however, that this does not apply to a minor change specified by Order of the Ministry of Economy, Trade and Industry. (2) A registered specified electricity transmission and distribution utility that intends to obtain registration of change set forth in the preceding paragraph must submit a written application stating the matters subject to change to the Minister of Economy, Trade and Industry, pursuant to provisions by Order of the Ministry of Economy, Trade and Industry. (3) The provisions of Article 27-16, paragraph (2) and the preceding two Articles apply mutatis mutandis to the registration of change set forth in paragraph (1). In this case, the phrase "the following matters" in Article 27-17, paragraph (1) is deemed to be replaced with "the matters subject to change" and the phrase "a specified electricity transmission and distribution utility that has submitted a written application set forth in Article 27-16, paragraph (1) falls under any of the following items" in paragraph (1) of the preceding Article is deemed to be replaced with "a registered specified electricity transmission and distribution utility that has submitted a written application for registration of change falls under any of the following items (excluding item (ii))". (4) If there is a change to the matters listed in the items of Article 27-16, paragraph (1) (excluding item (iv)) or when a registered specified electricity transmission and distribution utility makes a minor change specified by Order of the Ministry of Economy, Trade and Industry as set forth in the proviso to paragraph (1), the registered specified electricity transmission and distribution utility must notify the Minister of Economy, Trade and Industry to that effect without delay. (5) If the Minister of Economy, Trade and Industry accepts the notification under the preceding paragraph, the minister must register the matters set forth in Article 27-17, paragraph (1), item (i), among those contained in the notification, in the registry of specified electricity transmission and distribution utilities providing retail services.

(Suspension and Discontinuation of Retail Service) Article 27-20 (1) If a registered specified electricity transmission and distribution utility suspends or discontinues the all or part of its retail service provided by using electric facilities for the transmission of electricity and for distribution of electricity that it independently maintains and operates, it must notify the Minister of Economy, Trade and Industry to that effect without delay. (2) If a registered specified electricity transmission and distribution utility intends to suspend or discontinue the all or part of its retail service provided by using electric facilities for the transmission of electricity and for distribution of electricity that it independently maintains and operates, it must publicize that intention among the recipients of its retail service in advance pursuant to provisions by Order of the Ministry of Economy, Trade and Industry.

(Rescission of Registration) Article 27-21 (1) If a registered specified electricity transmission and distribution utility falls under any of the following items, the Minister of Economy, Trade and Industry may rescind the registration made under Article 27-15: (i) the registered specified electricity transmission and distribution utility has violated this Act or an order or ruling pursuant thereto and the violation is found to be harmful to the public interest; (ii) the registered specified electricity transmission and distribution utility has been registered under Article 27-15 or obtained registration of change under Article 27-19, paragraph (1), by wrongful means; and (iii) the registered specified electricity transmission and distribution utility now falls under Article 27-18, paragraph (1), item (i) or (iii). (2) The provisions of Article 27-18, paragraph (2) apply mutatis mutandis to the case set forth in the preceding paragraph.

(Cancellation of Registration) Article 27-22 The Minister of Economy, Trade and Industry must cancel the registration of the relevant registered specified electricity transmission and distribution utility if notification of discontinuation of the whole of retail service under Article 27-20, paragraph (1) has been given, if the minister has rescinded the registration pursuant to paragraph (1) of the preceding Article, or if notification of dissolution under Article 27-25, paragraph (2) has been given.

(Delegation to Order of the Ministry of Economy, Trade and Industry) Article 27-23 Beyond what is provided for in Article 27-15 through the preceding Article, any matters necessary for the registration of a registered specified electricity transmission and distribution utility are specified by Order of the Ministry of Economy, Trade and Industry.

(Succession) Article 27-24 (1) In the event of a transfer of the whole of a specified electricity transmission and distribution, or inheritance, merger or split of a specified electricity transmission and distribution utility (limited to those resulting in the taking over of the whole of a specified electricity transmission and distribution), the transferee of all specified electricity transmission and distribution, the heir, the corporation surviving after the merger or the corporation newly established upon the merger, or the corporation that has taken over all specified electricity transmission and distribution upon the split succeeds to the status of the specified electricity transmission and distribution utility; provided, however, that this does not apply when the specified electricity transmission and distribution relates to the provision of a retail service, and the transferee of all specified electricity transmission and distribution, the heir, the corporation surviving after the merger or the corporation newly established upon the merger, or the corporation that has taken over all specified electricity transmission and distribution upon the split falls under any of the items of Article 27-18, paragraph (1) (excluding item (iv)). (2) A person who has succeeded to the status of a specified electricity transmission and distribution utility pursuant to the preceding paragraph must notify the Minister of Economy, Trade and Industry to that effect without delay. (3) The provisions of Article 27-19, paragraph (5) apply mutatis mutandis to the notification under the preceding paragraph (limited to that relating to a registered specified electricity transmission and distribution utility).

(Suspension and Discontinuation of Business, and Dissolution of Corporation) Article 27-25 (1) If a specified electricity transmission and distribution utility intends to suspend or discontinue the all or part of its business, it must notify the Minister of Economy, Trade and Industry to that effect in advance pursuant to provisions by Order of the Ministry of Economy, Trade and Industry. (2) If a corporation acting as a specified electricity transmission and distribution utility is dissolved for reasons other than a merger, its liquidator (or its bankruptcy trustee if the dissolution is based on an order to commence bankruptcy proceedings) must notify the Minister of Economy, Trade and Industry to that effect without delay.

(Application Mutatis Mutandis) Article 27-26 (1) The provisions of Article 26 and Article 27, paragraph (1) apply mutatis mutandis to a specified electricity transmission and distribution utility. (2) The provisions of Article 2-12, Article 2-15, Article 2-16, and Article 2-17, paragraph (3) apply mutatis mutandis to a registered specified electricity transmission and distribution utility. In this case, the term "electricity retail" in Article 2-16, paragraph (1) is deemed to be replaced with "specified electricity transmission and distribution (limited to business that provides a retail service; the same applies in the following paragraph)" and the term "electricity retail" in paragraph (2) of the Article is deemed to be replaced with "specified electricity transmission and distribution". (3) The provisions of Article 2-13, Article 2-14, and Article 2-17, paragraph (2) apply mutatis mutandis to a registered specified electricity transmission and distribution utility and a person who engages in the intermediary, brokerage or agency service in the course of trade for the conclusion of an agreement on a retail service provided by a registered specified electricity transmission and distribution utility. In this case, the phrase "an electricity retailer and a person who engages in the intermediary, brokerage or agency service in the course of trade for the conclusion of an agreement on a retail service provided by an electricity retailer" in Article 2-13, paragraph (1) is deemed to be replaced with "a registered specified electricity transmission and distribution utility and a person who engages in the intermediary, brokerage or agency service in the course of trade for the conclusion of an agreement on a Retail Service provided by a registered specified electricity transmission and distribution utility" and the term "an electricity retailer, etc." in Article 2-13, Article 2-14 and Article 2-17, paragraph (2) is deemed to be replaced with "registered specified electricity transmission and distribution utility, etc.".

Section 5 Electricity Generation

(Notification of Business) Article 27-27 (1) A person who intends to conduct electricity generation must notify the Minister of Economy, Trade and Industry of the following matters pursuant to provisions by Order of the Ministry of Economy, Trade and Industry: (i) the name and address of the applicant, as well as the name of the representative if the applicant is a corporation; (ii) the names and locations of the principal business office and any other business office of the applicant; (iii) the site where electric facilities for generation of electricity to be used for electricity generation are to be installed, the type of motive power, frequency, and output capacity; (iv) the scheduled date of commencement of business; and (v) other matters specified by Order of the Ministry of Economy, Trade and Industry. (2) The notification given under the preceding paragraph must be accompanied by documents specified by Order of the Ministry of Economy, Trade and Industry. (3) If there is a change to the matters to which the notification given under paragraph (1) pertained, the relevant electricity generation utility must notify the Minister of Economy, Trade and Industry to that effect without delay, pursuant to provisions by Order of the Ministry of Economy, Trade and Industry.

(Obligation to Generate Electricity) Article 27-28 An electricity generation utility that has agreed to generate electricity to be used for general electricity transmission and distribution by using electric facilities for generation of electricity that it maintains and operates and to supply the electricity to a general electricity transmission and distribution utility must not refuse to generate and supply electricity without justifiable grounds.

(Application Mutatis Mutandis) Article 27-29 The provisions of the main clause of Article 2-7, paragraph (1), Article 2-7, paragraph (2), Article 27, paragraph (1), Article 27-2, Article 27-3, and Article 27-25 apply mutatis mutandis to an electricity generation utility. In this case, the phrase "the all or part of its business" in paragraph (1) of the Article 27-25 is be deemed to be replaced with "its business".

Section 6 Specified Service

Article 27-30 (1) A person who intends to conduct the business of supplying electricity must obtain a license from the Minister of Economy, Trade and Industry for each recipient of electricity supply and each place where electricity is to be supplied, except in the case of conducting electricity business (excluding electricity generation) or any of the following cases: (i) the person intends to supply electricity through generation facilities intended exclusively for supplying electricity to meet the demand in a single building or in any premises specified by Order of the Ministry of Economy, Trade and Industry; and (ii) the person intends to supply electricity to be used for electricity retail, general electricity transmission and distribution, or specified electricity transmission and distribution. (2) A person who intends to obtain a license under the preceding paragraph must submit a written application to the Minister of Economy, Trade and Industry, with a document specified by Order of the Ministry of Economy, Trade and Industry stating the following matters: (i) the name and address of the applicant, as well as the name of the representative if the applicant is a corporation; (ii) the name and address of the recipient of electricity supply; (iii) the place where electricity is to be supplied; and (iv) other matters specified by Order of the Ministry of Economy, Trade and Industry. (3) The Minister of Economy, Trade and Industry must not grant a license under paragraph (1) unless the Minister finds that the application for the license under the paragraph conforms to all of the following items: (i) the person who is to conduct electricity supply business has a close association with the recipient of electricity supply as specified by Order of the Ministry of Economy, Trade and Industry; and (ii) the place where electricity is to be supplied is located in the service area of a general electricity transmission and distribution utility, and there is no risk of harm to the interests of electricity users in the service area of the general electricity transmission and distribution utility. (4) If there has been a change to the matters listed in paragraph (2), item (i), item (ii) or item (iv), the person who has obtained a license under paragraph (1) must notify the Minister of Economy, Trade and Industry to that effect without delay. (5) If a person who has obtained a license under paragraph (1) discontinues the electricity supply business under the license, the person must notify the Minister of Economy, Trade and Industry to that effect without delay. (6) If the Minister of Economy, Trade and Industry finds that the person who has obtained a license under paragraph (1) has ceased to conform to any of the items of paragraph (3), the minister may rescind the license granted under paragraph (1).

Section 7 Operations Covering an Extensive Area Subsection 1 Cooperation among Electricity Utilities

Article 28 In the course of implementing electric power development projects, supplying electricity, operating electric facilities and performing other business activities, electricity utilities must cooperate with one another while appropriately making use of the capabilities of specified persons installing electric facilities for private use prescribed in Article 28-3, paragraph (2), so as to contribute to ensuring a stable supply of electricity and other comprehensive and reasonable development of electricity business through operations covering an extensive area.

Article 28-2 Deleted.

Subsection 2 Notification of Specified Person Installing Electric Facilities for Private Use

Article 28-3 (1) If a person who maintains and operates electric facilities for private use for electricity generation that satisfy the requirements specified by Order of the Ministry of Economy, Trade and Industry (excluding any electricity retailer, general electricity transmission and distribution utility, specified electricity transmission and distribution utility, and electricity generation utility) has the electric facilities for private use electrically connected directly, or indirectly through electric lines maintained and operated by a person other than a general electricity transmission and distribution utility, with electric lines maintained and operated by a general electricity transmission and distribution utility, the person must notify the Minister of Economy, Trade and Industry to that effect pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, with a document stating the person's name and address as well as the matters specified by Order of the Ministry of Economy, Trade and Industry, without delay; provided, however, that this does not apply to cases specified by Order of the Ministry of Economy, Trade and Industry. (2) If a person who has given notification under the preceding paragraph (hereinafter referred to as "specified person installing electric facilities for private use" in Article 31, paragraph (2)) falls under any of the following items, the person must notify the Minister of Economy, Trade and Industry to that effect without delay pursuant to provisions by Order of the Ministry of Economy, Trade and Industry: (i) the matters listed in the preceding paragraph have been changed; (ii) the electric facilities for private use for electricity generation regarding which notice has been given pursuant to the provisions of the preceding paragraph have ceased to satisfy the requirements specified by Order of the Ministry of Economy, Trade and Industry as referred to in the paragraph; (iii) the electric facilities for private use for electricity generation regarding which notice has been given pursuant to the provisions of the preceding paragraph have ceased to be electrically connected directly, or indirectly through electric lines maintained and operated by a person other than a general electricity transmission and distribution utility, with electric lines maintained and operated by a general electricity transmission and distribution utility; and (iv) the person otherwise falls under any of the items prescribed in an Order of the Ministry of Economy, Trade and Industry.

Subsection 3 The Organization for Cross-regional Coordination of Transmission Operators Division 1 General Provisions

(Purpose) Article 28-4 The purpose of the organization for cross-regional coordination of transmission operators (hereinafter referred to as "OCCTO") is to promote operations covering an extensive area in conducting electricity business by monitoring the status of the supply of and demand for electricity for electricity business conducted by an electricity utility and giving the electricity utility instructions to supply electricity to another electricity retailer, general electricity transmission and distribution utility, or specified electricity transmission and distribution utility whose status regarding supply of and demand for electricity has worsened.

(Legal Personality) Article 28-5 OCCTO is to have legal personality.

(Number) Article 28-6 Only one OCCTO is to be established.

(Name) Article 28-7 (1) OCCTO must use the words "organization for cross-regional coordination of transmission operators" in its name. (2) A legal person that is not the OCCTO must not use the words "organization for cross-regional coordination of transmission operators" in its name.

(Registration) Article 28-8 (1) The OCCTO must be registered pursuant to Cabinet Order. (2) The matters to be registered pursuant to the provisions of the preceding paragraph may not be asserted against a third party until the matters are registered.

(Application Mutatis Mutandis of the Act on General Incorporated Associations and General Incorporated Foundations) Article 28-9 The provisions of Articles 4 and 78 of the Act on General Incorporated Associations and General Incorporated Foundations (Act No. 48 of 2006) apply mutatis mutandis to the OCCTO.

Division 2 Members

(Qualification of Members) Article 28-10 (1) Persons qualified to be members of the OCCTO are limited to Electricity Utilities. (2) The OCCTO must not refuse entry to those who qualify as members nor set unreasonable conditions with respect to that entry.

(Entry Obligations) Article 28-11 (1) Electricity utilities must join as members of the OCCTO. (2) A person who intends to conduct electricity retail by registering under Article 2-2, a person who intends to conduct general electricity transmission and distribution under a license obtained under Article 3, a person who intends to conduct electricity transmission under a license obtained under Article 27-4, a person who gives notification under Article 27-13, paragraph (1) and intends to conduct specified electricity transmission and distribution, and a person who gives notification under Article 27-27, paragraph (1) and intends to conduct electricity generation must undertake procedures to join the OCCTO prior to applying for the registration, license or notification; provided, however, that this does not apply when the person is a member of the OCCTO. (3) A person who has undertaken procedures to join the OCCTO pursuant to the preceding paragraph becomes a member of the OCCTO when the registration in the paragraph has been obtained, the license in the paragraph has been obtained, or the notification in the paragraph has been accepted. (4) Upon joining the OCCTO, an electricity utility must notify the Minister of Economy, Trade and Industry to that effect without delay.

(Withdrawal) Article 28-12 (1) A member automatically withdraws from the OCCTO when the registration under Article 2-2 is rescinded pursuant to Article 2-9, paragraph (1) if the member is an electricity retailer, when the license under Article 3 is rescinded pursuant to Article 15, paragraph (1) or (2) if the member is a general electricity transmission and distribution utility, and when the license under Article 27-4 is rescinded pursuant to Article 27-8, paragraphs (1) through (3) if the member is an electricity transmission utility. (2) A member may not withdraw from the OCCTO; provided, however, that this does not apply in the following cases: (i) the registration under Article 2-2 has been rescinded pursuant to Article 2-9, paragraph (1); (ii) the license under Article 3 has been rescinded pursuant to Article 15, paragraph (1) or (2); (iii) the license under Article 27-4 has been rescinded pursuant to Article 27-8, paragraphs (1) through (3); (iv) the notification under Article 2-8, paragraph (1) (limited to that relating to discontinuation of electricity retail) is given; (v) the permission under Article 14, paragraph (1) (limited to that relating to discontinuation of all of general electricity transmission and distribution) is obtained; (vi) the permission under Article 14, paragraph (1) as applied mutatis mutandis pursuant to Article 27-12 (limited to that relating to discontinuation of all of electricity transmission) is obtained; (vii) the notification under Article 27-25, paragraph (1) (limited to that relating to discontinuation of all of specified electricity transmission and distribution) is given; (viii) the notification under Article 27-25, paragraph (1) as applied mutatis mutandis pursuant to Article 27-29 (limited to that relating to discontinuation of electricity generation) is given; and (ix) other cases specified by Order of the Ministry of Economy, Trade and Industry. (3) The provisions of paragraph (1) and the proviso to the preceding paragraph only apply to a member who is two or more of an electricity retailer, general electricity transmission and distribution utility, electricity transmission utility, specified electricity transmission and distribution utility, or electricity generation utility and is to no longer be any of them.

Division 3 Establishment

(Requirements for Establishment) Article 28-13 (1) In order to establish the OCCTO, seven or more electricity utilities who intend to become members must be founders. (2) After preparing the articles of incorporation and operational rules, the founders must invite persons who intend to become members, and hold an organizational meeting by giving public notice of the articles of incorporation and operational rules as well as the time and place of the meeting by two weeks prior to the date of the meeting. (3) Approval of the articles of incorporation and operational rules and decisions on any other matters necessary for the establishment of the OCCTO must be made by a resolution of the organizational meeting. (4) The articles of incorporation and operational rules may be amended at the organizational meeting. (5) Decisions at the organizational meeting under paragraph (3) are made by at least two-thirds of the voting rights of those present when at least half of the founders and the electricity utilities which have notified the founders of their intention to become members before the opening of the meeting are present. (6) Notwithstanding the provisions of Article 28-33, any necessary matters for the operation of business in the fiscal year which includes the date of establishment of the OCCTO (including the budget) may be decided by a resolution at an organizational meeting. (7) The provisions of the main clause of Article 28-34 apply mutatis mutandis to the business of the organizational meeting under the preceding paragraph. In this case, the term "all members" in the main clause of the Article is deemed to be replaced with "the founders and the electric utilities which have notified the founders of their intention to become members before the opening of the meeting". (8) The provisions of Articles 28-38 and 28-39 apply mutatis mutandis to a resolution of an organizational meeting.

(Application for Approval) Article 28-14 (1) After the conclusion of the organizational meeting, the founders must submit a written application for approval describing the matters listed in the following items to the Minister of Economy, Trade and Industry without delay, and obtain approval for the establishment: (i) the name; (ii) the location of the place of business; and (iii) the names and addresses of officers and trade names of members (2) A written application for approval under the preceding paragraph must be accompanied by the articles of incorporation, operational rules and other documents specified by Order of the Ministry of Economy, Trade and Industry.

(Standards for Approval) Article 28-15 If the Minister of Economy, Trade and Industry finds that the application for approval under paragraph (1) of the preceding Article conforms to each of the following items, the minister must grant approval for establishment: (i) the procedures for establishment and the terms of the articles of incorporation and operational rules conform to laws and regulations; (ii) there is no false statement in the written application for approval, the articles of incorporation and operational rules; (iii) none of the officers is a person who falls under any category of the persons in each item of Article 28-21; (iv) it is expected with certainty that business will be operated fairly and appropriately; and (v) the OCCTO to which the application pertains is organized in such a way as to conform to the provisions of this Act.

(Handover of Processes to the President) Article 28-16 When approval for establishment is granted, the founders must hand over their processes to the president without delay.

(Registration) Article 28-17 (1) The OCCTO is established by registering its establishment at the location of its principal office. (2) When the OCCTO registers its establishment under the preceding paragraph, it must notify the Minister of Economy, Trade and Industry to that effect without delay.

Division 4 Management

(Matters to be Included in the Articles of Incorporation) Article 28-18 (1) The articles of incorporation of the OCCTO must state the matters listed in the following: (i) purposes; (ii) name; (iii) location of the place of business; (iv) the following matters related to members: (a) membership qualification; (b) entry and withdrawal of members; and (c) sanctions against members; (v) matters related to general meetings; (vi) matters related to officers; (vii) matters related to the board of councilors; (viii) matters related to membership fees; (ix) matters related to finance and accounting; (x) matters related to changes to the articles of incorporation; and (xi) the means of public notice (2) No change to the articles of incorporation is effective unless approved by the Minister of Economy, Trade and Industry.

(Officers) Article 28-19 The OCCTO has one president, two or more directors, and one or more auditors as officers.

(Authority of Officers) Article 28-20 (1) The president represents the OCCTO and presides over its business. (2) Pursuant to the articles of incorporation, directors represent the OCCTO, assist the president in the management of the business of the OCCTO, represent the president when circumstances hinder the performance of the president's duties, and perform those duties when the position of president is vacant. (3) Auditors audit the business of the OCCTO. (4) When they deem it necessary, auditors may submit their opinions to the president or the Minister of Economy, Trade and Industry based on the results of audit.

(Disqualification of Officers) Article 28-21 A person who falls under any of the following items may not become an officer: (i) employees of the government or any local public entity (excluding part-time employees); (ii) a person who has been sentenced to imprisonment without work or a more severe punishment, if two years have not passed since the person finished serving the sentence or ceased to be subject to its enforcement; and (iii) a person who has been subject to a fine for violation of this Act or any order issued under this Act, if two years have not passed since the person finished paying the fine or ceased to be subject to the fine.

Article 28-22 If an officer comes to fall under any of the items of the preceding Article, the OCCTO must dismiss the officer.

(Appointment, Term of Office and Dismissal of Officers) Article 28-23 (1) Officers are appointed or dismissed at a general meeting pursuant to the provisions of the articles of incorporation; provided, however, that the officers at the time of establishment are appointed at the organizational meeting. (2) The appointment (excluding appointment of officers at the time of establishment) and dismissal of officers of the OCCTO under the provisions of the preceding paragraph do not come into effect without the approval of the Minister of Economy, Trade and Industry. (3) The term of office of an officer is a period of not more than two years as specified by the articles of incorporation. (4) Officers may be re-appointed. (5) If any officer violates this Act, an order or ruling pursuant thereto, the articles of incorporation or operational rules, or commits a particularly inappropriate act in relation to the business of the OCCTO, the Minister of Economy, Trade and Industry may order the OCCTO to dismiss the officer, specifying a time limit. (6) If the OCCTO does not dismiss an officer who has become ineligible under the provisions of Article 28-21 or does not obey an order pursuant to the provisions of the preceding paragraph, the Minister of Economy, Trade and Industry may dismiss the officer.

(Prohibition of the Concurrent Holding of Positions by Officers) Article 28-24 No officer may become an officer of any profit-oriented association or personally engage in any profit-making business; provided, however, that this does not apply when the officer has obtained approval to do so from the Minister of Economy, Trade and Industry.

(Prohibition of Concurrent Holding of Positions by Auditors) Article 28-25 Auditors must not concurrently hold the position of president, director, councilor or employee of the OCCTO.

(Restriction on the Right of Representation) Article 28-26 Neither the president nor the directors has the right of representation with regard to any matter in which their interests and the interests of the OCCTO conflict. In this case, auditors represent the OCCTO.

(Board of Councilors) Article 28-27 (1) The OCCTO has a board of councilors in charge of deliberating on important matters concerning its administration. (2) The board of councilors consists of not more than twenty councilors. (3) The councilors are appointed by the president, with the authorization of the Minister of Economy, Trade and Industry, from among persons with relevant knowledge and experience in electricity business.

(Appointment of Employees) Article 28-28 Employees of the OCCTO are appointed by the president.

(Officers and Employee Obligations to Confidentiality) Article 28-29 (1) No officer, employee or councilor of the OCCTO or person who formerly held such a position may disclose to another person any confidential information learned during the course of duties or misappropriate that information. (2) No officer, employee or councilor of the OCCTO or person who was formerly in such a position may use any information learned during the course of duties for any purpose other than for the business of the OCCTO.

(Position of Officers and Employees) Article 28-30 With regard to the application of the Penal Code (Act No. 45 of 1907) and other penal provisions, officers, employees and councilors of the OCCTO are deemed to be employees engaged in public service under laws and regulations.

Division 5 General Meetings

(Convocation of General Meetings) Article 28-31 (1) The president must convene an ordinary general meeting once every fiscal year pursuant to the provisions of the articles of incorporation. (2) The president may convene an extraordinary general meeting when the finding it necessary to do so.

(Attendance of Designated Employees at Meetings) Article 28-32 Employees designated by the Minister of Economy, Trade and Industry may attend general meetings and state their opinions.

(Matters to be Resolved at General Meetings) Article 28-33 Beyond matters for which special provisions exist in this Act, the following matters require a resolution of a general meeting: (i) changes to the articles of incorporation; (ii) decision or revision of budgets; (iii) changes to operational rules (iv) settlement of accounts; and (v) beyond what is listed in the preceding items, matters set forth in the articles of incorporation.

(Decisions at General Meetings) Article 28-34 Decisions at general meetings are made by a majority vote of the members present when at least half of all members are present and by the chairperson in the event of a tie; provided, however, that decisions on the matters set forth in items (i) and (iii) of the preceding Article are made by at least a two-thirds majority vote of the members present.

(Extraordinary General Meetings) Article 28-35 The president must convene an extraordinary general meeting when a demand indicating the matters that are the purpose of the meeting is presented from one-fifth or more of all members; provided, however, that a percentage that differs from one-fifth of all members may be specified by the articles of incorporation.

(Convocation of General Meetings) Article 28-36 Notice of convocation for a general meeting must be given in accordance with the means specified by the articles of incorporation at least five days prior to the day of the general meeting and indicate the matter that is the subject of the general meeting.

(Decisions at General Meetings) Article 28-37 Only matters of which notice has been given in advance pursuant to the provisions of the preceding Article may be resolved at a general meeting; provided, however, that this does not apply when otherwise provided for in the articles of incorporation.

(Voting Rights of Members) Article 28-38 (1) All members have equal voting rights. (2) Members who do not attend a general meeting may vote in writing or through a proxy. (3) The provisions of the preceding two paragraphs do not apply when otherwise provided for in the articles of incorporation.

(No Voting Right) Article 28-39 When a decision is to be made regarding the relationship between the OCCTO and a certain member, that member has no voting rights.

Division 6 Operations

(Operations) Article 28-40 The OCCTO conducts the following operations in order to achieve the purposes set forth in Article 28-4: (i) monitor the status of the supply and demand of electricity for electricity businesses conducted by members; (ii) give instructions pursuant to the provisions of Article 28-44, paragraph (1); (iii) establish basic guidelines for the performance of the services for electricity transmission and distribution, etc. (meaning wheeling service and other services for transformation, transmission and distribution of electricity provided by a general electricity transmission and distribution utility or electricity transmission utility; hereinafter the same applies in this Article) (hereinafter referred to as "Guidelines for the Services for Electricity Transmission and Distribution" in Article 28-45, Article 28-46 and Article 29, paragraph (2)); (iv) conduct a review and delivery pursuant to the provisions of Article 29, paragraph (2) (including when applied mutatis mutandis pursuant to paragraph (4) of that Article); (v) provide services for inviting people who will maintain and operate electric facilities for generation of electricity by implementing bidding processes or by any other means, and other services for promoting installation of electric facilities for generation of electricity; (vi) give guidance or make recommendations to electricity suppliers or perform other services necessary to ensure the smooth performance of the services for electricity transmission and distribution, etc. and otherwise ensure stable electricity supply; (vii) handle complaints from and settle disputes with electricity suppliers with regard to the services for electricity transmission and distribution, etc.; (viii) provide relevant information, and liaise and coordinate with respect to the services for electricity transmission and distribution, etc.; (ix) conduct business incidental to that set forth in the preceding items; and (x) beyond what is listed in the preceding items, conduct other operations necessary to achieve the purposes set forth in Article 28-4.

(Operational Rules) Article 28-41 (1) The operational rules of the OCCTO must state matters concerning its business, the execution thereof, and other matters specified by Order of the Ministry of Economy, Trade and Industry. (2) If instructions under the provisions of Article 28-44, paragraph (1) have been given, the matters concerning business and the execution thereof under the preceding paragraph must include matters in relation to amounts payable or receivable by members and other matters necessary for execution of instructions. (3) If the OCCTO intends to change its operational rules, it must obtain approval from the Minister of Economy, Trade and Industry.

(Submission of Reports or Materials) Article 28-42 (1) When it is necessary in order to conduct its business, the OCCTO may request its members to submit reports or materials. (2) A member who has been requested to submit reports or materials pursuant to the provisions of the preceding paragraph must submit them without delay. (3) Upon receiving a request from the OCCTO, if the Minister of Economy, Trade and Industry finds that it is particularly necessary for the conduct of business by the OCCTO, the minister may issue materials (limited to those pertaining to the information held by the Minister of Economy, Trade and Industry with regard to enforcement of this Act) to the OCCTO and have the OCCTO inspect them.

(Obligation to Provide Information) Article 28-43 Pursuant to the provisions of its operational rules, members must provide the OCCTO with information on the quantity of electricity generated by the electric facilities for business use for generation of electricity maintained and operated by them at all times, information pertaining to the frequency of the electricity supplied by them and any other information provided for in the operational rules as information necessary for the execution of business listed in Article 28-40, item (i) by the OCCTO.

(Instructions by OCCTO) Article 28-44 (1) If the status of supply of and demand for electricity for electricity retail conducted by a member who is an electricity retailer, general electricity transmission and distribution conducted by a member who is a general electricity transmission and distribution utility, or specified electricity transmission and distribution conducted by a member who is a specified electricity transmission and distribution utility has worsened or is likely to worsen, and the OCCTO finds it necessary to improve the status of supply of and demand for electricity, it may instruct members to undertake the following actions pursuant to the provisions of the operational rules; provided, however, that it may not instruct a member who is an electricity transmission utility to conduct the matter set forth in item (i), a member who is an electricity retailer and a member who is an electricity generation utility to conduct the matter set forth in item (ii), and a member who is an electricity transmission utility and a member who is an electricity generation utility to conduct the matter set forth in item (iii): (i) supply electricity to a member for which the status of supply of and demand for electricity has worsened; (ii) provide a member who is an electricity retailer, a member who is a general electricity transmission and distribution utility, or a member who is a specified electricity transmission and distribution utility with cross-area wheeling service; (iii) receive supply of electricity from a member; (iv) lease electric facilities to or from a member or share electric facilities with a member; and (v) beyond what is listed in the preceding items, take necessary measures to improve the status of supply of and demand for electricity. (2) If the OCCTO gives instructions pursuant to the preceding paragraph, it must immediately report the contents of the instructions and any other matters specified by Order of the Ministry of Economy, Trade and Industry to the Minister of Economy, Trade and Industry. (3) If the OCCTO finds that a member who has received instructions pursuant to the provisions of paragraph (1) fails to take necessary measures pertaining to the instructions without justifiable grounds, it must immediately report that fact to the Minister of Economy, Trade and Industry.

(Guidelines for Services for Electricity Transmission and Distribution) Article 28-45 Guidelines for Services for Electricity Transmission and Distribution are to establish the following: (i) matters pertaining to improvement in the capacity of electric lines maintained and operated by a general electricity transmission and distribution utility; (ii) matters pertaining to electric connections between electric facilities for generation of electricity and electric lines maintained and operated by a general electricity transmission and distribution utility; and (iii) other matters specified by Order of the Ministry of Economy, Trade and Industry.

(Approval of Guidelines for Services for Electricity Transmission and Distribution) Article 28-46 (1) Guidelines for Services for Electricity Transmission and Distribution are not effective unless approved by the Minister of Economy, Trade and Industry. The same applies when a general electricity utility intends to amend the Guidelines (excluding minor matters specified by Order of the Ministry of Economy, Trade and Industry). (2) The Minister of Economy, Trade and Industry must not grant approval under the preceding paragraph unless the minister finds that the Guidelines for the Services for Electricity Transmission and Distribution subject to an application for approval under the paragraph conform to all of the following items: (i) its terms are not in violation of any applicable law; (ii) the procedures for its establishment or amendment are not in violation of any applicable law or the articles of incorporation; and (iii) the Guidelines are not unfairly discriminatory. (3) If the Minister of Economy, Trade and Industry finds that the Guidelines for Services for Electricity Transmission and Distribution do not conform to any of the items in the preceding paragraph, the minister must order the OCCTO to amend the Guidelines for Services for Electricity Transmission and Distribution. (4) If the OCCTO makes an amendment to minor matters specified by Order of the Ministry of Economy, Trade and Industry under paragraph (1), it must give notice of the amended Guidelines for Services for Electricity Transmission and Distribution to the Minister of Economy, Trade and Industry without delay.

Division 7 Finance and Accounting

(Fiscal Year) Article 28-47 The fiscal year of the OCCTO is from April 1 to March 31 of the following year; provided, however, that the fiscal year including the day of establishment of the OCCTO is from the day of establishment to the following March 31.

(Approval of Budgets) Article 28-48 The OCCTO must prepare a budget and business plan for each fiscal year, and obtain approval from the Minister of Economy, Trade and Industry prior to the beginning of the fiscal year (in the fiscal year that includes the day of establishment of the OCCTO, without delay after establishment). The same applies when the OCCTO intends to revise them.

(Submission of Financial Statements) Article 28-49 (1) The OCCTO must prepare an inventory of property, a balance sheet, a profit and loss statement, a business report and a settlement of accounts (hereinafter referred to as "financial statements, etc." in this Article) for the previous fiscal year and submit these to and gain approval therefor from the Minister of Economy, Trade and Industry as specified by Order of the Ministry of Economy, Trade and Industry within three months from the day of commencement of a fiscal year (excluding the fiscal year that includes the day of establishment of the OCCTO). (2) When the OCCTO submits financial statements, etc. to the Minister of Economy, Trade and Industry pursuant to the provisions of the preceding paragraph, it must attach to these the written opinion of the auditor of the financial statements, etc. (3) The OCCTO must keep a copy of the financial statements, etc. prepared and approved by the Minister of Economy, Trade and Industry pursuant to the provisions of paragraph (1) at the office of the OCCTO and make them available for public inspection.

(Delegation to Order of the Ministry of Economy, Trade and Industry) Article 28-50 Beyond what is provided for in this Act, matters necessary for the finance and accounting of the OCCTO are specified by Order of the Ministry of Economy, Trade and Industry.

Division 8 Supervision

(Supervision Order) Article 28-51 If the Minister of Economy, Trade and Industry finds it necessary for the enforcement of this Act, the minister may issue to the OCCTO a supervision order related to changes to its articles of incorporation or operational rules or related to any other matters concerning its operation.

Division 9 Miscellaneous Provisions

(Dissolution) Article 28-52 Dissolution of the OCCTO is provided for by other Acts.

Subsection 4 Supply Plan

Article 29 (1) Pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, an electricity utility must each fiscal year prepare a plan on the supply of electricity and the installation and operation of electric facilities for a period commencing from the fiscal year as specified by Order of the Ministry of Economy, Trade and Industry (hereinafter referred to as a "supply plan") and must notify the Minister of Economy, Trade and Industry of the plan through the OCCTO prior to the beginning of the fiscal year (in the case of the fiscal year which includes the day of becoming an electricity utility, without delay after becoming an electricity utility). (2) When the OCCTO receives a supply plan from an electricity utility pursuant to the provisions of the preceding paragraph, it must summarize it, consider it in light of the Guidelines for Services for Electricity Transmission and Distribution and knowledge obtained through the performance of services, and send the summary to the Minister of Economy, Trade and Industry prior to the beginning of the relevant fiscal year (promptly, in the case of a supply plan relating to a person who became an electricity utility in the fiscal year) with its opinion, if any, attached thereto, as specified by Order of the Ministry of Economy, Trade and Industry. (3) If an electricity utility revises its supply plan, it must notify the Minister of Economy, Trade and Industry of the revised matters via the OCCTO without delay. (4) The provisions of paragraph (2) apply mutatis mutandis to cases as set forth in the preceding paragraph. In this case, the phrase "summarize it, consider it" in paragraph (2) is deemed to be replaced with "consider it" and the phrase "prior to the beginning of the relevant fiscal year (promptly, in the case of a supply plan relating to a person who became an electricity utility in the fiscal year)" is deemed to be replaced with "promptly". (5) If the Minister of Economy, Trade and Industry finds that a supply plan is not appropriate for securing a stable electricity supply or otherwise realizing the comprehensive and reasonable development of electricity business through operations covering an extensive area, the minister may recommend that the electricity utility should revise the supply plan. (6) When the Minister of Economy, Trade and Industry makes a recommendation pursuant to the preceding paragraph and deems it particularly necessary and appropriate, the minister may order the electricity utility to take the following measures; provided, however, that the Minister may not order an electricity transmission utility to take the measure set forth in item (i), order an electricity retailer or electricity generation utility to take the measure set forth in item (ii), or order an electricity transmission utility or electricity generation utility to take the measure set forth in item (iii): (i) supply electricity to an electricity retailer, general electricity transmission and distribution utility, or specified electricity transmission and distribution Utility; (ii) provide a cross-area wheeling service; (iii) receive a supply of electricity; (iv) lease electric facilities to or from an electricity utility or share electric facilities with an electricity utility; and (v) beyond what is listed in the preceding items, take measures specified by Order of the Ministry of Economy, Trade and Industry as necessary for operations covering an extensive area.

Article 30 Deleted.

Subsection 5 Supply Order

Article 31 (1) In the event of a hindrance, or likely hindrance to ensuring a stable supply of electricity, if the Minister of Economy, Trade and Industry finds it particularly necessary and appropriate in order to secure the public interest, the minister may order an electricity utility to take the following measures; provided, however, that the minister may not order an electricity transmission utility to take the measure set forth in item (i), order an electricity retailer or electricity generation utility to take the measure set forth in item (ii), or order an electricity transmission utility or electricity generation utility to take the measure set forth in item (iii): (i) supply electricity to an electricity retailer, general electricity transmission and distribution utility, or specified electricity transmission and distribution utility; (ii) provide a cross-area wheeling service to an electricity retailer, general electricity transmission and distribution utility, or specified electricity transmission and distribution utility; (iii) receive a supply of electricity from an electricity utility; (iv) lease electric facilities to or from an electricity utility or share electric facilities with an electricity utility; and (v) beyond what is listed in the preceding items, take measures as necessary for ensuring a stable supply of electricity by way of operations covering an extensive Area. (2) If the Minister of Economy, Trade and Industry finds that it is still difficult to secure a stable electricity supply even after taking the measures specified in the preceding two paragraphs, and finds it particularly necessary and appropriate in order to secure the public interest, the minister may recommend that a specified person installing electric facilities for private use take measures necessary to secure the electricity supply to a general electricity utility or otherwise to secure a stable electricity supply. (3) If the Minister of Economy, Trade and Industry makes a recommendation pursuant to the preceding paragraph and the person who received the recommendation fails to follow this recommendation without justifiable grounds, the minister may make that fact public. (4) If the Minister of Economy, Trade and Industry takes the measures set forth in paragraph (1) or (2), the minister is to immediately notify the OCCTO of the details of the measures. (5) If an order has been issued pursuant to paragraph (1) or a recommendation has been made pursuant to paragraph (2), the amount payable or receivable by each party concerned and other details regarding the execution of the order or recommendation are determined by consultation between the parties.

Article 32 The provisions of Article 25, paragraphs (2) through (5) apply mutatis mutandis to the consultation referred to in paragraph (5) of the preceding Article.

Article 33 (1) Either party that is dissatisfied with the amount payable or receivable by that party as determined by an award issued under Article 25, paragraph (2) as applied mutatis mutandis pursuant to the preceding Article may file a suit to request an increase or decrease of the amount, within six months from the day when the party is notified of the award. (2) The suit set forth in the preceding paragraph is to be filed against the other party. (3) A request for review with respect to an award issued under Article 25, paragraph (2) as applied mutatis mutandis pursuant to the preceding Article may not be made by reason of dissatisfaction with the amount payable or receivable by the party.

Subsection 6 Restrictions on the Use of Electricity

Article 34 (1) If it seems that if no adjustment is made to the supply of and demand for electricity, a shortage of electricity supply will adversely affect the national economy, standard of living or public interest, the Minister of Economy, Trade and Industry may, to the extent necessary for resolving the situation and pursuant to Cabinet Order provisions, order or recommend a person who receives electricity supply from an electricity retailer, general electricity transmission and distribution utility, or registered specified electricity transmission and distribution utility (hereinafter referred to as an "electricity retailer, etc." in this Article) to restrict the use of electricity supplied by an electricity retailer, etc. by limiting the power use or peak load or specifying the purpose of use or the date and time when power use should be stopped, or to restrict the receipt of electricity from an electricity retailer, etc. by limiting the capacity for receipt of electricity. (2) The Minister of Economy, Trade and Industry may, to the extent necessary for the enforcement of the preceding paragraph, require a person who receives electricity supply from an electricity retailer, etc. to report the status of use of electricity supplied by the electricity retailer, etc. and any other necessary matters pursuant to Cabinet Order provisions.

Section 8 Mediation and Arbitration

(Mediation) Article 35 (1) If, between electricity suppliers, one of them offers to conclude an agreement or any other arrangement relating to a transaction of electricity as specified by Cabinet Order (hereinafter referred to as an "agreement, etc." in this paragraph and paragraph (1) of the following paragraph) but the other refuses to hold a consultation or they fail to reach an agreement through a consultation, or the parties fail to reach an agreement on the amount payable or receivable by the respective parties, conditions or other details concerning the conclusion of an Agreement, etc., each party may apply for mediation by the Electricity and Gas Market Surveillance Commission (hereinafter referred to as the "commission" in this Section); provided, however, that this does not apply after either party has applied for an award under Article 25, paragraph (2) (including when applied mutatis mutandis pursuant to Article 32) or arbitration under paragraph (1) of the following Article. (2) The commission is to conduct mediation except when it finds that a case is not suited for mediation due to its nature or that the party has applied for mediation for unjust purposes and without due cause. (3) Mediation by the commission is conducted by a mediator that the commission appoints for each case from among the members and other employees (limited to those that are designated by the commission in advance; the same applies in paragraph (3) of the following Article) of the commission. (4) A mediator must endeavor to resolve a case by mediating between the parties and ascertaining the salient points of both parties' assertions. (5) A mediator may hear the opinions of the parties or request them to submit reports, and prepare and submit to the parties a mediation proposal that is needed to resolve the case. (6) A mediator may discontinue a case if either party has applied for an award under Article 25, paragraph (2) (including when applied mutatis mutandis pursuant to Article 32) or arbitration under paragraph (1) of the following Article.

(Arbitration) Article 36 (1) If electricity suppliers fail to reach an agreement through a consultation on the amount payable or receivable by the respective parties, conditions or other details concerning the conclusion of an agreement, etc., the parties may apply for arbitration by the commission; provided, however, that this does not apply after either party has applied for an award under Article 25, paragraph (2) (including when applied mutatis mutandis pursuant to Article 32). (2) Arbitration by the commission is conducted by three arbitrators. (3) The commission appoints as arbitrators those whom the parties have selected by agreement from among the members and other employees of the commission; provided, however, that if the parties fail to select arbitrators by agreement, the commission appoints arbitrators from among the members and other employees of the commission. (4) With regard to arbitration, the provisions of the Arbitration Act (Act No. 138 of 2003) apply mutatis mutandis by deeming the arbitrator under this Act as the arbitrator under the Arbitration Act, unless otherwise provided for in this Article.

(Application Route) Article 37 When filing an application for mediation or arbitration with the Commission pursuant to the provisions of this Section, the application must be filed via the Minister of Economy, Trade and Industry.

(Delegation to Cabinet Order) Article 37-2 Beyond what is provided for in this Section, matters necessary for mediation and arbitration procedures are specified by Cabinet Order.

Chapter III Electric Facilities

Section 1 Definitions

Article 38 (1) The term "electric facilities for general use" as used in this Act means the following electric facilities; provided, however, that it does not include those installed on the same premises (including areas similar thereto; hereinafter the same applies) together with electric facilities for generation of electricity other than small capacity generation facilities, or those installed at places specified by Order of the Ministry of Economy, Trade and Industry where, due to the existence of explosive or inflammable substances, there is a high risk of the occurrence of an accident from electric facilities: (i) electric facilities for receiving electricity from another person at a voltage lower than that specified by Order of the Ministry of Economy, Trade and Industry and using the electricity thus received at the same premises where it has been received (including small capacity generation facilities installed in the same premises and electrically connected with the electric facilities) which are electrically connected with electric facilities installed outside the premises only via the electric lines used for receiving electricity; (ii) small capacity generation facilities installed at premises (including electric facilities installed at the same premises and electrically connected with generation facilities for using electricity) which are electrically connected with electric facilities installed outside the premises only via the electric lines used by another person at the premises for receiving electricity at a voltage lower than that specified by Order of the Ministry of Economy, Trade and Industry under the preceding item; and (iii) electric facilities specified by Order of the Ministry of Economy, Trade and Industry as similar to what is listed in the preceding two items. (2) The term "small capacity generation facilities" as used in the preceding paragraph means electric facilities for generation of electricity at a voltage lower than that specified by Order of the Ministry of Economy, Trade and Industry which are specified by Order of the Ministry of Economy, Trade and Industry. (3) The term "electric facilities for business use" as used in this Act means electric facilities other than electric facilities for general use. (4) The term "electric facilities for private use" as used in this Act means electric facilities other than electric facilities used for any of the following businesses and electric facilities for general use: (i) general electricity transmission and distribution; (ii) electricity transmission; (iii) specified electricity transmission and distribution; and (iv) electricity generation if electric facilities for generation of electricity used for the business satisfy the requirements specified by order of the competent ministry.

Section 2 Electric Facilities for Business Use Subsection 1 Conformity to Technical Standards

(Maintenance of Electric Facilities for Business Use) Article 39 (1) A person that installs electric facilities for business use must maintain the electric facilities for business use to ensure that they conform to the technical standards established by order of the competent ministry. (2) The order of the competent ministry set forth in the preceding paragraph must be formulated in accordance with the following: (i) electric facilities for business use are not to pose a risk of inflicting bodily or damage to objects; (ii) electric facilities for business use are not to cause electric or magnetic interference with the functioning of other electric equipment or objects; (iii) damage to electric facilities for business use are not to significantly hinder the supply of electricity by a general electricity transmission and distribution utility; and (iv) if electric facilities for business use are used for general electricity transmission and distribution, any damage to the electric facilities for business use is not to significantly hinder the supply of electricity pertaining to the general electricity transmission and distribution.

(Order for Conformity to Technical Standards) Article 40 If the competent minister finds that electric facilities for business Use do not conform to the technical standards established by order of the competent ministry under paragraph (1) of the preceding Article, the minister may order the person who installs the electric facilities for business use to repair or alter the electric facilities for business use to ensure conformity to the technical standards, or order the person to relocate the facilities or suspend the use of them, or restrict the person from using the facilities.

(Sharing of Expenses) Article 41 (1) If electric facilities for business use have ceased to conform to the technical standards established by order of the competent ministry under Article 39, paragraph (1) as a result of the installation of electric equipment or other objects owned by another person (excluding those specified by Cabinet Order), necessary measures to be taken to ensure conformity to the technical standards and the means of sharing expenses for the measures are determined through consultation between the parties; provided, however, that when the means of sharing expenses is specified by Cabinet Order, that means apply. (2) The provisions of the main clause of Article 25, paragraph (2), Article 25, paragraphs (3) through (5) and Article 33 apply mutatis mutandis if the parties fail to consult as set forth in the preceding paragraph or to reach an agreement through consultation. In this case, the term "the Minister of Economy, Trade and Industry" in the provisions of the main clause of Article 25, paragraph (2) and Article 25, paragraphs (3) and (4) are deemed to be replaced with "the competent minister". (3) If the competent minister intends to issue an award under the main clause of Article 25, paragraph (2) as applied mutatis mutandis pursuant to the preceding paragraph, the minister must consult with the ministers concerned in advance pursuant to Cabinet Order provisions.

Subsection 2 Independent Safety Measures

(Safety Regulations) Article 42 (1) In order to ensure safety of the construction, maintenance and operation of electric facilities for business use, pursuant to provisions by order of the competent ministry, a person who installs electric facilities for business use must establish safety regulations for each organization in charge of the electric facilities for business use the safety of which should be secured uniformly, and notify the competent minister of the regulations before the commencement of the use of the electric facilities for business use by the organizations (in the case of facilities requiring self-inspection set forth in Article 51, paragraph (1) or operator's inspection set forth in Article 52, paragraph (1), before the commencement of the construction of the facilities). (2) If a person who installs electric facilities for business use revises the safety regulations, the person must notify the competent minister of the revised matters without delay. (3) If the competent minister finds it necessary in order to ensure safety of the construction, maintenance, and operation of electric facilities for business use, the minister may order a person who installs electric facilities for business use to revise the safety regulations. (4) A person who installs electric facilities for business use and employees thereof must observe the safety regulations.

(Chief Engineers) Article 43 (1) Pursuant to provisions by order of the competent ministry, a person who installs electric facilities for business use must appoint one or more chief engineer from among persons who have a chief engineer's license in order to have the person supervise the safety of the construction, maintenance, and operation of the facilities. (2) Notwithstanding the provisions of the preceding paragraph, when permitted by the competent minister, a person who installs electric facilities for private use may appoint a person who does not have a chief engineer's license as a chief engineer. (3) If a person who installs electric facilities for business use appoints a chief engineer (excluding the case of an appointment permitted under the preceding paragraph), the person must notify the competent minister to that effect without delay. The same applies when the person has dismissed the chief engineer. (4) A chief engineer must perform the duty of supervising the safety of the construction, maintenance, and operation of electric facilities for business use in good faith. (5) People who are engaged in the construction, maintenance or operation of electric facilities for business use must follow the instructions given by the chief engineer to ensure the safety thereof.

(Chief Engineer Licenses) Article 44 (1) The types of chief engineer license are as follows: (i) first-class chief electricity engineer license; (ii) second-class chief electricity engineer license; (iii) third-class chief electricity engineer license; (iv) first-class chief dam/waterway engineer license; (v) second-class chief dam/waterway engineer license; (vi) first-class chief boiler/turbine engineer license; and (vii) second-class chief boiler/turbine engineer license. (2) A chief engineer license is granted by the Minister of Economy, Trade and Industry to persons who fall under any of the following: (i) a person who holds the academic record or qualification and work experience specified by Order of the Ministry of Economy, Trade and Industry for each type of chief engineer license; and (ii) with respect to the types of chief engineer's license listed in items (i) through (iii) of the preceding paragraph, a person who has passed an examination for a chief electricity engineer license. (3) The Minister of Economy, Trade and Industry may choose not to grant a chief engineer license to a person who falls under any of the following: (i) a person who was ordered to return a chief engineer license pursuant to the following paragraph, if one year has not passed since the order was issued; and (ii) a person who was fined or sentenced to a more severe punishment for violation of this Act or any order issued under this Act, if two years have not passed since the person finished serving the sentence or ceased to be subject to its enforcement. (4) If a person who has a chief engineer license has violated this Act or any order issued under this Act, the Minister of Economy, Trade and Industry may order that person to return the chief engineer license. (5) The scope of the construction, maintenance and operation of the electric facilities for business use for which a person who has a chief engineer license is in charge of safety supervision as well as the procedural matters concerning the granting of a chief engineer license are specified by Order of the Ministry of Economy, Trade and Industry.

(Entrustment of Licensing Processes) Article 44-2 (1) Pursuant to Cabinet Order provisions, the Minister of Economy, Trade and Industry may entrust the all or part of the processes concerning chief engineer licenses (limited to those listed in items (i) through (iii) of paragraph (1) of the preceding Article) to a designated examining body as set forth in paragraph (2) of the following Article (these processes do not include the processes concerning the return of a chief engineer license or other processes specified by Cabinet Order; hereinafter referred to as "licensing processes"). (2) Current or former officers or employees of a designated examining body entrusted with the licensing processes under the preceding paragraph must not divulge any secrets that they have become aware of in the course of administering the entrusted licensing processes.

(Examination for Chief Electricity Engineer Licenses) Article 45 (1) Examinations for a chief electricity engineer licenses are conducted by the Minister of Economy, Trade and Industry for each type of chief engineer license with respect to the knowledge and skills required for ensuring safety in the construction, maintenance and operation of electric facilities for business use. (2) The Minister of Economy, Trade and Industry may designate a person (hereinafter referred to as a "designated examining body") and have the person administer the processes concerning an examination for a chief electricity engineer license (hereinafter referred to as "examination processes"). (3) The subjects of an examination for a chief electricity engineer license, procedure for participating in the examination and other details concerning the examination for a chief electricity engineer license are specified by Order of the Ministry of Economy, Trade and Industry.

Article 46 Deleted

Subsection 3 Special Provisions Concerning Assessment on Environmental Impact

(Environmental Impact Assessment on Electric Facilities for Business Use) Article 46-2 An environmental impact assessment as prescribed in Article 2, paragraph (1) of the Environmental Impact Assessment Act (Act No. 81 of 1997) on a construction project to install or modify electric facilities for business use that falls under the category of Class 1 projects prescribed in paragraph (2) of the Article or the category of Class 2 projects prescribed in paragraph (3) of the Article (hereinafter referred to as an "environmental impact assessment") and relevant procedures are as provided for by that Act and this Subsection.

(Environmental Impact Assessment by Simple Procedures) Article 46-3 Pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, a person who intends to implement a construction project to install or modify electric facilities for business use that falls under the category of Class 2 projects prescribed in Article 2, paragraph (3) of the Environmental Impact Assessment Act must state in a document set forth in the first sentence of paragraph (1) of Article 4 of the Act, the matters prescribed in the first sentence of the paragraph as well as the results of an environmental impact assessment conducted by a simple procedure specified by Order of the Ministry of Economy, Trade and Industry for the construction project.

(Preparation of Scope Statements) Article 46-4 A person who intends to implement a construction project to install or modify electric facilities for business use that falls under the category of relevant projects prescribed in Article 2, paragraph (4) of the Environmental Impact Assessment Act (these projects are hereinafter referred to as "specified relevant projects", and the person is hereinafter referred to as a "specified business operator") must state in a scoping statement concerning an environmental impact assessment set forth in Article 5, paragraph (1) of the Act (hereinafter referred to as a "scoping statement") the items to be considered in an Environmental Impact Assessment of the specified relevant project as well as the survey, prediction and assessment means to be employed, notwithstanding the provisions of item (vii) of the paragraph.

(Submission of Scoping Statements) Article 46-5 If a specified business operator submits a scoping statement pursuant to Article 6, paragraph (1) of the Environmental Impact Assessment Act, the operator must also submit the document and a summary thereof to the Minister of Economy, Trade and Industry.

(Submission of Outline of Comments on Scoping Statements) Article 46-6 (1) A specified business operator must state in a document set forth in Article 9 of the Environmental Impact Assessment Act the matters prescribed in the Article as well as the operator's view on the comments given under Article 8, paragraph (1) of the Act. (2) If a specified business operator submits documents pursuant to Article 9 of the Environmental Impact Assessment Act, the operator must also submit the documents to the Minister of Economy, Trade and Industry.

(Comments of Municipal or Prefectural Governor on Scoping Statements) Article 46-7 (1) Comments of a municipal or prefectural governor set forth in Article 10, paragraph (1) of the Environmental Impact Assessment Act as well as comments of a mayor specified by Cabinet Order set forth in paragraph (4) of the Article and a municipal or prefectural governor set forth in paragraph (5) of the Article that relate to a specified relevant project are to be submitted to the Minister of Economy, Trade and Industry instead of the relevant business operator, as comments to be given under the paragraphs, notwithstanding the provisions of the paragraphs. (2) In relation to comments set forth in Article 10, paragraph (1) of the Environmental Impact Assessment Act that relate to a specified relevant project, a municipal or prefectural governor must give due consideration to the business operator's views stated in the document set forth in Article 9 of the Act pursuant to paragraph (1) of the preceding Article beyond due considerations as required by Article 10, paragraph (3) of the Act. (3) In relation to comments set forth in Article 10, paragraph (4) of the Environmental Impact Assessment Act that relate to a specified relevant project, a mayor specified by Cabinet Order set forth in the paragraph must give due consideration to the business operator's views stated in the document set forth in Article 9 of the Act pursuant to paragraph (1) of the preceding Article beyond due considerations as required by Article 10, paragraph (6) of the Act.

(Recommendations on Scoping Statements) Article 46-8 (1) When a scoping statement has been submitted pursuant to Article 46-5, and the Minister of Economy, Trade and Industry finds it necessary in order to examine the scoping statement and ensure that due consideration will be given to environmental preservation in the specified relevant project pertaining to the scoping statement, while taking into account the municipal or prefectural governor's comments given under Article 10, paragraph (1) of the Environmental Impact Assessment Act or comments of a mayor specified by Cabinet Order set forth in paragraph (4) of the Article and a municipal or prefectural governor set forth in paragraph (5) of the Article, if any, as well as the outline of the comments under Article 8, paragraph (1) of the Act and the business operator's views thereon, which are submitted pursuant to Article 46-6, paragraph (2), the minister may make, within a period specified by Order of the Ministry of Economy, Trade and Industry from the day when the submission made under Article 46-5 is accepted, necessary recommendations to the specified business operator regarding the items to be considered in an environmental impact assessment on the specified relevant project as well as the survey, prediction and assessment means to be employed. (2) If the Minister of Economy, Trade and Industry finds it unnecessary to make recommendations pursuant to the preceding paragraph, the minister must notify the specified business operator to that effect without delay. (3) If the Minister of Economy, Trade and Industry makes recommendations pursuant to paragraph (1) or gives notification pursuant to the preceding paragraph, the minister must also send a copy of the document set forth in Article 10, paragraph (1) of the Environmental Impact Assessment Act or the document set forth in paragraph (4) of the Article and the document set forth in paragraph (5) of the Article, if any, to the specified business operator.

(Selection of Items of Environmental Impact Assessment) Article 46-9 When recommendations are made pursuant to paragraph (1) of the preceding Article, the specified business operator must make a review pursuant to Article 11, paragraph (1) of the Environmental Impact Assessment Act, while taking into account, pursuant to the paragraph, the comments given under Article 10, paragraph (1), (4) or (5) of the Act as well as the comments given under Article 8, paragraph (1) of the Act, and referring to the recommendations.

(Preparation of Draft Environmental Impact Statements) Article 46-10 A specified business operator must state in a draft environmental impact statement set forth in Article 14, paragraph (1) of the Environmental Impact Assessment Act (hereinafter referred to as a "draft EIS") the matters listed in the items of the paragraph as well as the content of the recommendations made under Article 46-8, paragraph (1).

(Submission of Draft EIS) Article 46-11 When a specified business operator submits a draft EIS pursuant to Article 15 of the Environmental Impact Assessment Act, the operator must also submit the draft EIS and a summary thereof to the Minister of Economy, Trade and Industry.

(Submission of Outline of Comments on Draft EIS) Article 46-12 If a specified business operator submits the documents set forth in Article 19 of the Environmental Impact Assessment Act, the operator must also submit the documents of the same Article to the Minister of Economy, Trade and Industry.

(Comments of Relevant Municipal or Prefectural Governor on Draft EIS) Article 46-13 Comments of a relevant municipal or prefectural governor set forth in Article 20, paragraph (1) of the Environmental Impact Assessment Act as well as comments of a mayor specified by Cabinet Order set forth in paragraph (4) of the Article and a relevant municipal or prefectural governor set forth in paragraph (5) of the Article that relate to a specified relevant project are to be submitted to the Minister of Economy, Trade and Industry instead of the business operator, as comments to be given under the paragraphs notwithstanding the provisions of the paragraphs.

(Recommendations on Draft EIS) Article 46-14 (1) When a draft EIS has been submitted pursuant to Article 46-11, and the Minister of Economy, Trade and Industry finds it necessary in order to examine the draft EIS and ensure that due consideration will be given to environmental preservation in the specified relevant project pertaining to the draft EIS, while taking into account the relevant municipal or prefectural governor's comments given under Article 20, paragraph (1) of the Environmental Impact Assessment Act or comments of a mayor specified by Cabinet Order set forth in paragraph (4) of the Article and a relevant municipal or prefectural governor set forth in paragraph (5) of the Article, if any, as well as the outline of the comments under Article 18, paragraph (1) of the Act and the proponent's views thereon, which are submitted pursuant to Article 46-12, the minister may make, within a period specified by Order of the Ministry of Economy, Trade and Industry from the day when the submission made under Article 46-11 is accepted, necessary recommendations to the specified business operator regarding an Environmental Impact Assessment on the specified relevant project. (2) If the Minister of Economy, Trade and Industry conducts an examination pursuant to the preceding paragraph, the minister must consult with the Minister of the Environment from the standpoint of preserving the environment. (3) If the Minister of Economy, Trade and Industry finds it unnecessary to make recommendations pursuant to paragraph (1), the minister must notify the specified business operator to that effect without delay. (4) If the Minister of Economy, Trade and Industry makes recommendations pursuant to paragraph (1) or gives notification pursuant to the preceding paragraph, the minister must also send a copy of the document set forth in Article 20, paragraph (1) of the Environmental Impact Assessment Act or the document set forth in paragraph (4) of the Article and the document set forth in paragraph (5) of the Article, if any, to the specified business operator.

(Preparation of Environmental Impact Statements) Article 46-15 (1) If recommendations are made pursuant to paragraph (1) of the preceding Article, the specified business operator must make a review pursuant to Article 21, paragraph (1) of the Environmental Impact Assessment Act, while taking into account pursuant to the paragraph, the comments given under Article 20, paragraph (1), (4) or (5) of the Act as well as the comments given under Article 18, paragraph (1) of the Act, and referring to the recommendations. (2) A specified business operator must state in an environmental impact statement set forth in Article 21, paragraph (2) of the Environmental Impact Assessment Act (hereinafter referred to as an "EIS") the matters listed in the items of the paragraph as well as the content of the recommendations made under paragraph (1) of Article 46-8 and paragraph (1) of the preceding Article.

(Submission of EIS) Article 46-16 When a specified business operator prepares an EIS pursuant to Article 21, paragraph (2) of the Environmental Impact Assessment Act, the operator must submit the EIS to the Minister of Economy, Trade and Industry. The same applies when the specified business operator has revised the EIS in response to an order issued under paragraph (1) of the following Article.

(Order of Revision) Article 46-17 (1) If the Minister of Economy, Trade and Industry finds it necessary and appropriate in order to ensure that due consideration will be given to environmental preservation in the specified relevant project pertaining to the EIS submitted under the preceding Article, the minister may order, within a period specified by Order of the Ministry of Economy, Trade and Industry from the day when the submission made under the Article is accepted, the specified business operator to revise the EIS, within a reasonable time limit set by the minister. (2) If the Minister of Economy, Trade and Industry finds it unnecessary to issue an order pursuant to the preceding paragraph, the minister must notify the specified business operator to that effect without delay.

(Submission of EIS) Article 46-18 (1) If the Minister of Economy, Trade and Industry gives notification pursuant to paragraph (2) of the preceding Article, the minister must send a copy of the EIS to which the notification pertained to the Minister of the Environment. (2) If the specified business operator receives notification pursuant to paragraph (2) of the preceding Article, the operator must promptly submit to the relevant municipal or prefectural governor(s) and relevant mayor(s) prescribed in Article 15 of the Environmental Impact Assessment Act the EIS to which the notification pertained, a summary thereof, and a document stating the content of the order issued under paragraph (1) of the preceding Article.

(Making EIS Public and Available for Public Inspection) Article 46-19 In the case of the application of Article 27 of the Environmental Impact Assessment Act to a specified business operator, the phrase "made submission or notification pursuant to Article 25, paragraph (3)" in the Article is deemed to be replaced with "received notification pursuant to Article 46-17, paragraph (2) of the Electricity Business Act", the term "EIS" is deemed to be replaced with "EIS to which the notification pertained", and the phrase "EIS and other relevant documents" is deemed to be replaced with "EIS to which the notification pertained, a summary thereof, and a document stating the content of the order issued under paragraph (1) of the Article".

(Consideration of Environmental Preservation) Article 46-20 A specified business operator must implement a specified relevant project while giving due consideration to environmental preservation pursuant to Article 38, paragraph (1) of the Environmental Impact Assessment Act, and must maintain and operate the electric facilities for business use pertaining to the specified relevant project while giving due consideration to environmental preservation based on the content of the EIS to which the notification given under Article 46-17, paragraph (2) pertained.

(Publication of Reports) Article 46-21 In the case of the application of Article 38-3, paragraph (1) of the Environmental Impact Assessment Act to a specified business operator, the phrase "it as well as send it to a person who has received the report under Article 21, paragraph (2) pursuant to Article 22, paragraph (1)" in the paragraph is deemed to be replaced with "it".

(Technical Replacement of Terms and Phrases upon Application of the Environmental Impact Assessment Act) Article 46-22 Beyond what is provided for in this Subsection, the technical replacement of terms and phrases upon applying the Environmental Impact Assessment Act to a specified business operator and other necessary matters concerning the application of the Act to a specified business operator are specified by Cabinet Order.

(Exclusion from Application of the Environmental Impact Assessment Act) Article 46-23 The provisions of Articles 22 through 26, Articles 33 through 37, Article 38-3, paragraph (2), Article 38-4 and Article 38-5 of the Environmental Impact Assessment Act do not apply to a specified relevant project to be implemented by a specified business operator.

Subsection 4 Construction Plans and Inspections

(Construction Plans) Article 47 (1) If a construction project to install or modify electric facilities for business use is specified by order of the competent ministry as being particularly important for assuring public safety, the person who intends to implement the project must obtain approval of the plans for the construction project from the competent minister; provided, however, that this does not apply to any unavoidable temporary work to be implemented in the event of loss of or damage to electric facilities for business use or in the event of a disaster or other emergency. (2) A person who obtains approval under the preceding paragraph and intends to revise the approved construction plan must obtain approval of the revision from the competent minister; provided, however, that this does not apply to any minor revision specified by order of the competent ministry. (3) If the competent minister finds that the construction plan to which the application for approval under the preceding two paragraphs pertained conforms to all of the following items, the minister must grant approval under the preceding two paragraphs: (i) the electric facilities for business use conform to the technical standards established by order of the competent ministry under Article 39, paragraph (1); (ii) if the electric facilities for business use are used for general electricity transmission and distribution, the electric facilities for business use are technically appropriate for securing the smooth supply of electricity; (iii) in the case of a construction plan for a specified relevant project, the plan is in accordance with the EIS to which the notification given under Article 46-17, paragraph (2) pertained with respect to the specified relevant project; and (iv) in the case of a construction plan for a Class 2 project prescribed in Article 2, paragraph (3) of the Environmental Impact Assessment Act (excluding a specified relevant project), the measures set forth in Article 4, paragraph (3), item (ii) of the Act (including when applied mutatis mutandis pursuant to paragraph (4) of the Article and paragraph (2) of Article 29 of the Act) have been taken. (4) In the case referred to in the proviso to paragraph (1), a person who has commenced the construction project and installs electric facilities for business use must notify the competent minister to that effect without delay. (5) In the case referred to in the proviso to paragraph (2), a person who has revised the construction plan and obtains approval under paragraph (1) must notify the competent minister of the revised construction plan without delay; provided, however, that this does not apply to the cases specified by order of the competent ministry.

Article 48 (1) When a person intends to implement a construction project to install or modify electric facilities for business use (excluding those specified by order of the competent ministry under paragraph (1) of the preceding Article), which is specified by order of the competent ministry, the person must notify the competent minister of the plan for the construction project. The same applies when the person intends to revise the construction plan (excluding any minor revision specified by order of the competent ministry). (2) a person who gives notification pursuant to the preceding paragraph must not commence the construction project to which the notification pertained until 30 days have passed since the day when the notification was accepted. (3) If the competent minister finds that the construction plan of which notification was given pursuant to paragraph (1) conforms to all of the following items, the minister may shorten the period prescribed in the preceding paragraph: (i) the requirements listed in the items of paragraph (3) of the preceding Article; and (ii) in the case of a construction project concerning electric facilities for business use for electricity generation by means of hydraulic power, the electric facilities for business use are technically appropriate for assuring the effective utilization of hydraulic power for electricity generation. (4) If the competent minister finds that the construction plan of which notification was given pursuant to paragraph (1) fails to conform to any of the items of the preceding paragraph, the minister may order, within 30 days from the day when the notification is accepted (if the period prescribed in paragraph (2) has been extended pursuant to the next paragraph, the extended period), the person who has given the notification to revise or discontinue the construction plan. (5) If the competent minister has reasonable grounds for believing that it will take a considerable period of time to examine whether or not the construction plan of which notification was given pursuant to paragraph (1) conforms to the items of paragraph (3) and that the examination will not be completed within the period prescribed in paragraph (2), the minister may extend the period up to a period of time that the minister considers reasonable. In this case, the competent minister must notify the person who has given the notification of the extended period and the reason for extension without delay.

(Pre-use Inspection) Article 49 (1) Electric facilities for business use to be installed or modified according to a construction plan approved under Article 47, paragraph (1) or paragraph (2) or electric facilities for business use to be installed or modified according to a construction plan of which notification was given pursuant to paragraph (1) of the preceding Article (if an order has been issued with respect to the construction plan relating to electric facilities pursuant to paragraph (4) of the Article, but notification has not yet been given pursuant to paragraph (1) of the Article, the facilities are be excluded) which are specified by order of the competent ministry as being particularly important for ensuring public safety (hereinafter referred to as "specified electric facilities for business use" in Article 112-3, paragraph (3)) must not be used unless and until they undergo and pass an inspection conducted by the competent minister with respect to the construction project pursuant to provisions by order of the competent ministry; provided, however, that this does not apply to the cases specified by order of the competent ministry. (2) Electric facilities for business use that conform to all of the following items are to pass the inspection set forth in the preceding paragraph: (i) the construction project for the facilities has been implemented according to the construction plan approved under Article 47, paragraph (1) or paragraph (2) (including a plan following any minor revision specified by order of the competent ministry under the proviso to paragraph) or the construction plan of which notification was given pursuant to paragraph (1) of the preceding Article (including a plan following any minor revision specified by order of the competent ministry under the second sentence of the paragraph); and (ii) the facilities conform to the technical standards established by order of the competent ministry under Article 39, paragraph (1).

Article 50 (1) If the competent minister has conducted the inspection pursuant to paragraph (1) of the preceding Article with respect to the electric facilities for business use prescribed in the same paragraph and finds it unavoidable, the minister may regard the electric facilities for business use as having provisionally passed the inspection, designating the period and means of use thereof. (2) Notwithstanding the provisions of paragraph (1) of the preceding Article, electric facilities for business use regarded as having provisionally passed the inspection pursuant to the preceding paragraph are not precluded from being used within the period specified under the preceding paragraph by the means specified under the paragraph.

(Pre-use Safety Management Inspections) Article 51 (1) If a person installs electric facilities for business use to be installed or modified according to the construction plan of which notification was given pursuant to Article 48, paragraph (1) (if an order has been issued with respect to a construction plan relating to electric facilities pursuant to paragraph (4) of the Article, but notification has not yet been given pursuant to paragraph (1) of the Article, the facilities are excluded; the facilities specified by order of the competent ministry under Article 49, paragraph (1) are also excluded), which are specified by order of the competent ministry, the person must conduct a self-inspection of the electric facilities for business use before commencing the use thereof, record the inspection results, and preserve the records, pursuant to provisions by order of the competent ministry. (2) In the self-inspection set forth in the preceding paragraph (hereinafter referred to as "pre-use self-inspection"), it is necessary to confirm that the electric facilities for business use conform to all of the following: (i) the construction project for the facilities has been implemented according to the construction plan of which notification was given pursuant to Article 48, paragraph (1) (including a plan following any minor revision specified by order of the competent ministry under the second sentence of the paragraph); and (ii) the facilities conform to the technical standards established by order of the competent ministry under Article 39, paragraph (1). (3) Within the period specified by order of the competent ministry (if notification has been given under paragraph (7), the period specified by order of the competent ministry depending on the past evaluation of the pre-use self-Inspection to which the notification pertained), a person who installs electric facilities for business use subject to a pre-use self-inspection must submit the system for conducting a pre-use self-inspection to undergo examination by a person registered by the Minister of Economy, Trade and Industry if the person installs electric facilities for business use other than electric facilities for business use for electricity generation by means of nuclear power which are specified by Order of the Ministry of Economy, Trade and Industry, or examination by the competent minister in the case of other persons. (4) The examination set forth in the preceding paragraph is conducted, in accordance with the principle of ensuring safety management for electric facilities for business use, with respect to the organization in charge of pre-use self-inspection, and to inspection means, process control, and other matters specified by order of the competent ministry. (5) If a person registered by the Minister of Economy, Trade and Industry under paragraph (3) has completed the examination set forth in the paragraph, the person must notify the Minister of Economy, Trade and Industry of the examination results pursuant to provisions by Order of the Ministry of Economy, Trade and Industry without delay. (6) Based on the results of the examination conducted under paragraph (3) (including the examination results of which notification was given pursuant to the preceding paragraph), the competent minister is to comprehensively evaluate the system for conducting a pre-use self-inspection submitted by the person who installs the electric facilities for business use. (7) The competent minister must notify the person who has undergone the examination under paragraph (3) of the results of the examination as well as the results of the evaluation set forth in the preceding paragraph.

(Self-check of Electric Facilities for Business Use by Person Installing the Facilities) Article 51-2 (1) When a person installing electric facilities for business use which are specified by order of the competent ministry as being particularly important for ensuring public safety intends to commence the use thereof, the person must personally check that the electric facilities for business use conform to the technical standards established by order of the competent ministry referred to in Article 39, paragraph (1), pursuant to provisions by order of the competent ministry; provided, however, that this does not apply to the case of using electric facilities for business use related to the approval referred to in Article 47, paragraph (1) (limited to a construction project for installation) or notification under paragraph (4) of the Article or Article 48, paragraph (1), and cases specified by order of the competent ministry. (2) The provisions of the preceding paragraph apply mutatis mutandis if the person installing electric facilities for business use prescribed in the paragraph has made a change as specified by order of the competent ministry to the electric facilities for business use and intends to commence with the use of the changed electric facilities for business use. In this case, the phrase "that the electric facilities for business use" in the paragraph is be deemed to be replaced with "that the changed electric facilities for business use", and the phrase "a construction project for installation" in the paragraph is deemed to be replaced with "a construction project for change". (3) When the person installing electric facilities for business use prescribed in paragraph (1) conducts a check under the paragraph (including when applied mutatis mutandis pursuant to the preceding paragraph), the person must notify the competent minister of the results thereof pursuant to provisions by order of the competent ministry, before commencing the use of the electric facilities for business use.

(Operator Inspections on Welding) Article 52 (1) A person who installs electric facilities falling under the category of boilers, turbines and other machines or apparatus for electricity generation specified by order of the competent ministry (hereinafter referred to as "boilers, etc."), of which some parts under a pressure higher than that specified by order of the competent ministry (hereinafter referred to as "pressure parts") are to be welded, or imported boilers, etc. of which pressure parts are welded, must conduct an operator inspection of the electric facilities before commencing the use thereof, record the inspection results and preserve the records, pursuant to provisions by order of the competent ministry with respect to welding; provided, however, that this does not apply to cases specified by order of the competent ministry. (2) In the inspection set forth in the preceding paragraph, it is necessary to confirm that the welding conforms to the technical standards established by order of the competent ministry under Article 39, paragraph (1).

(Commencement of the Use of Electric Facilities for Private Use) Article 53 After a person who installs electric facilities for private use commences the use of the electric facilities for private use, the person must notify the competent minister to that effect without delay; provided, however, that this does not apply to the cases of using electric facilities for private use for which approval has been granted under Article 47, paragraph (1) or of which notification was given under paragraph (4) of the Article, Article 48, paragraph (1), or Article 51-2, paragraph (3) and to cases specified by order of the competent ministry.

(Periodic Inspections) Article 54 A person who installs specific important electric facilities (meaning boilers, turbines and other electric facilities for generation of electricity, which are specified by order of the competent ministry as being particularly important for assuring public safety and have some parts under a pressure higher than that specified by order of the competent ministry, as well as nuclear reactors for electricity generation and auxiliary equipment thereof, which are specified by order of the competent ministry) must undergo an inspection conducted by the competent minister at an interval specified by order of the competent ministry, pursuant to provisions by order of the competent ministry; provided, however, that this does not apply to the cases specified by order of the competent ministry.

(Periodic Safety Management Inspection) Article 55 (1) A person who installs electric facilities set forth in the following items (hereinafter referred to as "specified electric facilities" in this Article) must conduct an operator inspection of the specified electric facilities at periodic intervals, record the inspection results, and preserve the records, pursuant to provisions by Order of the competent ministry: (i) electric facilities for generation of electricity specified by Order of the competent ministry, such as boilers and turbines, which have some parts under a pressure higher than that specified by the preceding Article; (ii) among electric facilities, facilities including machinery and appliances installed out of doors which are specified by Order of the competent ministry (excluding those set forth in the preceding item); and (iii) nuclear reactors for electricity generation and auxiliary equipment thereof, which are specified by order of the competent ministry (excluding those set forth in the preceding two items). (2) In the inspection set forth in the preceding paragraph (hereinafter referred to as a "periodic operator inspection"), it is necessary to confirm that the specified electric facilities conform to the technical standards established by order of the competent ministry under Article 39, paragraph (1). (3) If a person who installs specified electric facilities subject to a periodic operator inspection finds in the periodic operator inspection that any parts of the specified electric facilities for generation of electricity by means of nuclear power, which are specified by Order of the competent ministry, are no longer likely to conform to the technical standards established by order of the competent ministry under Article 39, paragraph (1) after a certain period of time has passed, that person must estimate the time when the parts will cease to conform to the technical standards established by Order of the competent ministry under the paragraph and other matters specified by Order of the competent ministry, record the estimation results and preserve the records, as well as report on the matters specified by Order of the competent ministry to the competent minister, pursuant to provisions by Order of the competent ministry. (4) Within the period specified by Order of the competent ministry (if notification has been given under Article 51, paragraph (7) as applied mutatis mutandis pursuant to paragraph (6), the period specified by Order of the competent ministry depending on the past evaluation of the periodic operator inspection to which the notification pertained), a person who installs specified electric facilities subject to a periodic operator inspection must submit the system for conducting a periodic operator inspection to undergo examination by a person registered by the Minister of Economy, Trade and Industry if that person installs specified electric facilities other than specified electric facilities for generation of electricity by means of nuclear power, which are specified by Order of the Ministry of Economy, Trade and Industry, or examination by the Minister of Economy, Trade and Industry in the case of other persons. (5) The examination set forth in the preceding paragraph is conducted, in accordance with the principle of ensuring safety management for specified electric facilities, with respect to the organization in charge of a periodic operator inspection, and to means of inspection, process control, and other matters specified by Order of the competent ministry. (6) The provisions of Article 51, paragraphs 5 through 7 apply mutatis mutandis to the examination set forth in paragraph (4). In this case, the phrase "paragraph (3)" in paragraph (5) of the Article is deemed to be replaced with "paragraph (4)", and the term "the electric facilities for business use" in paragraph (6) of the Article is deemed to be replaced with "the specified electric facilities".

Subsection 5 Succession

(Succession to Status of Person Who Installs Electric Facilities for Business Use) Article 55-2 (1) In the event of the inheritance, merger or split of a person who installs electric facilities for business use (limited to those resulting in the taking over of the electric facilities for business use), the heir, the corporation surviving after the merger or the corporation newly established upon the merger, or the corporation that has taken over the electric facilities for business use upon the split succeed to the status of the person who installs the electric facilities for business use as prescribed in this Act. (2) A person who has succeeded to the status of a person who installs electric facilities for business use pursuant to the preceding paragraph must notify, without delay, the competent minister to that effect, with a document proving that fact.

Section 3 Electric Facilities for General Use

(Order for Conformity to Technical Standards) Article 56 (1) If the Minister of Economy, Trade and Industry finds that electric facilities for general use do not conform to the technical standards established by Order of the Ministry of Economy, Trade and Industry, the minister may order the owner or possessor to repair or alter the electric facilities for general use to ensure conformity to the technical standards, to relocate the facilities or suspend the use of them, or restrict the owner or possessor from using the facilities. (2) The provisions of Article 39, paragraph (2) (excluding item (iii) and item (iv)) apply mutatis mutandis to the Order of the Ministry of Economy, Trade and Industry set forth in the preceding paragraph.

(Obligation to Investigate) Article 57 (1) A person who maintains and operates electric lines that are electrically connected directly to electric facilities for general use (hereinafter referred to as a "person maintaining and operating electric lines" in this Article, the following Article, and Article 89) must investigate whether or not the electric facilities for general use conform to the technical standards established by Order of the Ministry of Economy, Trade and Industry under paragraph (1) of the preceding Article, pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, except in cases specified by Order of the Ministry of Economy, Trade and Industry; provided, however, that this does not apply if the person is unable to obtain consent for the entry into the site where the electric facilities for general use are installed from the owner or possessor of the facilities. (2) If a person maintaining and operating electric lines finds, as a result of the investigation conducted under the preceding paragraph, that the electric facilities for general use do not conform to the technical standards established by Order of the Ministry of Economy, Trade and Industry under paragraph (1) of the preceding Article, the person must notify, without delay, the owner or possessor of the facilities of the measures to be taken to ensure conformity to the technical standards and the possible consequences that might occur if the measures were not taken. (3) If the person maintaining and operating electric lines fails to conduct an investigation under paragraph (1) or give notification under the preceding paragraph or applies an inappropriate means for investigation or notification, the Minister of Economy, Trade and Industry may order the person maintaining and operating electric lines to conduct an investigation or give notification, or to improve the means for investigation or notification. (4) A person maintaining and operating electric lines must keep books and state the matters with respect to the processes concerning the investigation under paragraph (1) and the notification under paragraph (2) specified by Order of the Ministry of Economy, Trade and Industry in those books. (5) The books set forth in the preceding paragraph must be preserved pursuant to provisions by Order of the Ministry of Economy, Trade and Industry.

(Entrustment of Investigation Services) Article 57-2 (1) A person maintaining and operating electric lines may entrust a person registered by the Minister of Economy, Trade and Industry (hereinafter referred to as a "registered investigation bodies") with the task of investigating whether or not the electric facilities for general use that are electrically connected directly with electric lines maintained and operated by the person maintaining and operating electric lines conform to the technical standards established by Order of the Ministry of Economy, Trade and Industry under Article 56, paragraph (1), and if the electric facilities for general use do not conform to the technical standards, the task of notifying the owner or possessor of the facilities of the measures to be taken to ensure conformity to the technical standards as well as the possible consequences that might occur if the measures were not taken (hereinafter referred to as "investigation services"). (2) If a person maintaining and operating electric lines entrusts a registered investigation body with the investigation services pursuant to the preceding paragraph, the person must notify the Minister of Economy, Trade and Industry to that effect without delay. The same applies when an agreement for entrustment has expired. (3) The provisions of paragraph (1) of the preceding Article does not apply to the electric facilities for general use for which a person maintaining and operating electric lines has entrusted a registered investigation bodies with investigation services pursuant to paragraph (1) of this Article.

Chapter IV Use of Land

(Temporary Use) Article 58 (1) An electricity utility (excluding an electricity retailer; hereinafter the same applies in this Chapter) may, when it is necessary and unavoidable, temporarily use another person's land or buildings and other structures affixed thereto (hereinafter referred to as "land, etc.") for any of the following purposes to the extent that the use does not significantly hinder another person's use of the land, etc.; provided, however, that the use of buildings and other structures is allowed only for the purpose of supporting electric lines (including lines used for communication necessary for the maintenance and operation of electric lines) or auxiliary equipment thereof (hereinafter collectively referred to as "electric lines"): (i) establish a site for storing materials or parking vehicles, an earth dumping site, a work yard, or a tower or cableway for stringing, all of which are required to implement a construction project concerning electric lines to be used for electricity business (excluding electricity retail; hereinafter the same applies in this Chapter); (ii) install electric lines for urgent supply of electricity in the event of a natural disaster, incident or other emergency; and (iii) install markers for the purpose of installing electric facilities to be used for electricity business. (2) If an electricity utility intends to use another person's land, etc. temporarily pursuant to the preceding paragraph, the utility must obtain permission from the Minister of Economy, Trade and Industry; provided, however, that this does not apply to the temporary use for a period not exceeding 15 days in the event of a natural disaster, incident or other emergency. (3) When the Minister of Economy, Trade and Industry receives an application for permission under the preceding paragraph, the minister must notify the owner and possessor of the land, etc. to that effect and provide them with the opportunity to submit a written opinion. (4) If an electricity utility intends to use another person's land, etc. temporarily pursuant to paragraph (1), the utility must notify the possessor of the land, etc. in advance; provided, however, that if it is difficult to give notification in advance, it is sufficient for the electricity utility to give notification without delay after the commencement of the use. (5) When the land, etc. to be used temporarily under paragraph (1) is in use for residential purposes, consent must be obtained from the residents. (6) The period of temporary use under paragraph (1) may not exceed six months (or one year if provisional electric lines have been installed under item (ii) of the paragraph, or temporary use takes place under item (iii) of the paragraph). (7) A person who enters another person's land, etc. for the purpose of temporary use under paragraph (1) must carry a document certifying that the person has obtained permission under paragraph (2), and show the document when requested by a person concerned; provided, however, that this does not apply to the case referred to in the proviso to the paragraph.

(Entry into Land) Article 59 (1) When it is necessary in order to conduct the taking of measurements or field investigations of electric facilities to be used for electricity business, an electricity utility may enter another person's land with permission from the Minister of Economy, Trade and Industry. (2) The provisions of paragraph (3) of the preceding Article apply mutatis mutandis when an application for permission under the preceding paragraph is filed. (3) The provisions of paragraph (4) and paragraph (5) of the preceding Article and the main clause of paragraph (7) of the Article apply mutatis mutandis when an electricity utility enters another person's land pursuant to paragraph (1) of this Article.

(Passage) Article 60 (1) When it is necessary in order to implement a construction project with regard to electric lines to be used for electricity business or maintain electric lines, an electricity utility may pass through another person's land. (2) A person who passes through another person's land pursuant to the preceding paragraph must carry a certificate of identification and show it when requested by a person concerned. (3) The provisions of Article 58, paragraph (4) and paragraph (5) apply mutatis mutandis when an electricity utility passes through another person's land pursuant to paragraph (1).

(Clearing or Transplantation of Plants) Article 61 (1) If plants cause or are likely to cause interference with electric lines to be used for electricity business or plants cause hindrance to taking measurements or field investigations with regard to electric facilities to be used for electricity business or a construction project with regard to electric lines to be used for electricity business, an electricity utility may clear or transplant the plants with permission from the Minister of Economy, Trade and Industry, when it is unavoidable. (2) When an electricity utility intends to clear or transplant plants pursuant to the preceding paragraph, the utility must notify the owner of the plants in advance; provided, however, that if it is difficult to give notification in advance, it is sufficient for the electricity utility to give notification without delay after the clearing or transplantation. (3) If plants cause interference with electric lines to be used for electricity business and there is a risk that leaving the interference unaddressed would significantly damage the electric lines, thereby causing serious hindrance to the supply of electricity or cause a fire or other disaster, thereby harming public safety, an electricity utility may clear or transplant the plants without permission from the Minister of Economy, Trade and Industry, notwithstanding the provisions of paragraph (1). In this case, after the clearing or transportation, the electricity utility must notify, without delay, the Minister of Economy, Trade and Industry as well as the owner of the plants to that effect. (4) The provisions of Article 58, paragraph (3) apply mutatis mutandis when an application for permission under paragraph (1) is filed.

(Compensation for Loss) Article 62 If an electricity utility causes any loss from temporarily using another person's land, etc. pursuant to Article 58, paragraph (1), entering another person's land pursuant to Article 59, paragraph (1), passing through another person's land pursuant to Article 60, paragraph (1), or clearing or transplanting plants pursuant to paragraph (1) or paragraph (3) of the preceding Article, the utility must compensate the person who has suffered the loss for any loss that generally arises.

Article 63 (1) With respect to compensation for loss under the preceding Article, if the electricity utility and the person who has suffered the loss fail to with each other or reach an agreement through consultation, the electricity utility or the person who has suffered the loss may apply for an award by the municipal or prefectural governor who has jurisdiction over the land, etc. or the place where the land or the plants causing interference are located. (2) The provisions of Article 25, paragraphs (3) through (5) and Article 33 apply mutatis mutandis to an award set forth in the preceding paragraph. In this case, the term "Minister of Economy, Trade and Industry" in Article 25, paragraph (3) and paragraph (4) is deemed to be replaced with "municipal or prefectural governor". (3) An award ordering compensation for a loss must determine the amount of compensation as well as the time and means of payment thereof.

(Obligation to Restore) Article 64 When an electricity utility has finished with the temporary use of the Land, etc. pursuant to Article 58, paragraph (1), the utility must return the land, etc. after having restored the land, etc. to its original state or having compensated for any loss that would generally arise from not restoring the land to its original state.

(Use of Public Land) Article 65 (1) When it is necessary to install electric lines to be used for electricity business on a road, bridge, ditch, river, embankment or other public land, an electricity utility may use them with permission from the administrator thereof to the extent that the use does not impair their usability. (2) In the case referred to in the preceding paragraph, the electricity utility must pay a user's fee as determined by the administrator. (3) If the administrator refuses to grant permission under paragraph (1) without justifiable grounds or the amount of the user's fee determined by the administrator is inappropriate, the competent minister may, upon application by the electricity utility, grant permission or determine the amount of the user's fee. (4) The provisions of the preceding three paragraphs do not apply to roads prescribed in the Road Act (Act No. 180 of 1952) or to land areas on which roads are to be constructed as determined under Article 18, paragraph (1) of the Act and accessories to roads constructed on the land. (5) In any of the following cases, the competent minister must consult with the Minister of Economy, Trade and Industry in advance: (i) the competent minister intends to grant permission for use or determine the amount of a user's fee pursuant to paragraph (3); and (ii) an electricity utility intends to occupy roads or land areas on which roads are to be constructed or accessories to roads constructed on the land as set forth in the preceding paragraph for the purpose of installing electric lines to be used for electricity business, and the competent minister intends to make an administrative determination in response to a request for review of the determination of the amount of an occupation fee to be collected by the road administrator pursuant to Article 39, paragraph (1) of the Road Act (including when applied mutatis mutandis pursuant to Article 91, paragraph (2) of the Act) or the imposition of a condition to the permission or approval under Article 87, paragraph (1) of the Act (including when applied mutatis mutandis pursuant to Article 91, paragraph (2) of the Act).

(Application Mutatis Mutandis) Article 66 The provisions of Article 61, paragraph (3) as well as Article 62 and Article 63 apply mutatis mutandis to an electricity retailer and a person who installs electric facilities for private use. In this case, the phrase "significantly damage the electric lines, thereby causing serious hindrance to the supply of electricity or cause a fire or other disaster, thereby harming public safety" in Article 61, paragraph (3) is deemed to be replaced with "cause a fire or other disaster, thereby harming public safety".

Chapter V Electricity and Gas Market Surveillance Commission

(Establishment) Article 66-2 The Electricity and Gas Market Surveillance Commission (hereinafter referred to as the "commission") is established in the Ministry of Economy, Trade and Industry.

(Authority) Article 66-3 The commission processes matters within the scope of its authority pursuant to the provisions of this Act, the Gas Business Act (Act No. 51 of 1954), the Heat Supply Business Act (Act No. 88 of 1972), and the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities.

(Exercise of Authority) Article 66-4 The chairperson and members of the commission exercise their authority independently.

(Organization) Article 66-5 (1) The commission is composed of a chairperson and four members. (2) The chairperson and members serve on a part-time basis.

(Chairperson) Article 66-6 (1) The chairperson presides over the processes of the commission and represents it. (2) If the chairperson is unable to attend to the chairperson's duties, a member designated by the chairperson in advance performs the duties on behalf of the chairperson.

(Appointment of Chairperson and Members) Article 66-7 The chairperson and members are appointed by the Minister of Economy, Trade and Industry from among those who have expert knowledge of and experience in law, economy, finance or engineering, and who are able to make fair and neutral determinations concerning their duties.

(Term of Office of Chairperson and Members) Article 66-8 (1) The term of office of the chairperson and members is three years; provided, however, that the term of office of a substitute chairperson or member is the remaining term of office of the predecessor. (2) The chairperson and members may be reappointed. (3) When the term of office of the chairperson or a member has expired, the chairperson or member is to continue to perform the duties until a successor is appointed.

(Meetings) Article 66-9 (1) Meetings of the commission are convened by the chairperson. (2) The commission may not hold a meeting and adopt a resolution unless the chairperson and two or more members are present. (3) All matters before the commission are to be decided by a majority of those present, and in the case of a tie vote, the chairperson is to break the tie. (4) When applying the provisions of paragraph (2) and the chairperson is unable to attend to the chairperson's duties, the member prescribed in Article 66-6, paragraph (2) is deemed to be the chairperson.

(Secretariat) Article 66-10 (1) A secretariat is established in the commission to process the administrative processes of the commission. (2) The secretariat has a secretary general and necessary employees. (3) The secretary general takes control of the processes of the secretariat in accordance with the orders of the chairperson. (4) The internal organization of the secretariat is specified by Cabinet Order.

(Hearing of Opinions of the Commission) Article 66-11 (1) In any of the following cases, the Minister of Economy, Trade and Industry must hear the opinions of the commission in advance: (i) when intending to make the registration referred to in Article 2-2 or Article 27-15; (ii) when intending to rescind registration under Article 2-9, paragraph (1) or Article 27-21, paragraph (1); (iii) when intending to issue an order under Article 2-17, paragraph (1), paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-26, paragraph (3)) or paragraph (3) (including when applied mutatis mutandis pursuant to Article 27-26, paragraph (2)), Article 9, paragraph (5) (including when applied mutatis mutandis pursuant to Article 13, paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-12) and Article 27-12), Article 18, paragraph (6) or (11), Article 19, paragraph (1), Article 20, paragraph (3), Article 21, paragraph (3), Article 22-3, paragraph (3), Article 23, paragraph (6), Article 23-2, paragraph (2), Article 23-3, paragraph (2), Article 27, paragraph (1) (including when applied mutatis mutandis pursuant to Article 27-12, Article 27-26, paragraph (1), and Article 27-29), Article 27, paragraph (2), Article 27-3 (including when applied mutatis mutandis pursuant to Article 27-12 and Article 27-29), Article 27-11, paragraph (3) or (4), Article 27-11-3, paragraph (3), Article 27-11-4, paragraph (5), Article 27-11-5, paragraph (2), Article 27-11-6, paragraph (2), Article 27-13, paragraph (5) (including when applied mutatis mutandis pursuant to paragraph (8) of the Article), Article 28-46, paragraph (3), Article 28-51, Article 29, paragraph (6), Article 99, paragraph (2), Article 99-11, or Article 99-12; (iv) when intending to grant a license or give permission under Article 3, Article 8, paragraph (1) (including when applied mutatis mutandis pursuant to Article 27-12), Article 14, paragraph (1) (including when applied mutatis mutandis pursuant to Article 27-12), Article 24, paragraph (1), Article 27-4, Article 27-30, paragraph (1), or Article 99-7, paragraph (1); (v) when intending to give the approval or permission referred to in Article 10, paragraph (1) or (2) (including when these provisions are applied mutatis mutandis pursuant to Article 27-12), Article 14, paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-12), Article 18, paragraph (1), the proviso to Article 18, paragraph (2), the proviso to Article 22-2, paragraph(1), the proviso to Article 27-11-2, paragraph (1), Article 28-14, paragraph (1), Article 28-41, paragraph (3), Article 28-46, paragraph (1), Article 28-48, Article 99, paragraph (1), or Article 99-6, paragraph (1); (vi) when intending to rescind a license under Article 15, paragraph (2), Article 27-8, paragraph (2), or Article 27-30, paragraph (6); (vii) when intending to make a ruling to reduce a service area under Article 16, paragraph (2); (viii) when intending to make a ruling of revision under Article 19, paragraph (2); (ix) when intending to give approval under the proviso to Article 20, paragraph (2), the proviso to Article 21, paragraph (2), the proviso to Article 23, paragraph(2), the proviso to Article 27-11-4, paragraph (2), or Article 28-49, paragraph (1); (x) when intending to issue an award under Article 25, paragraph (2) (including when these provisions are applied mutatis mutandis pursuant to Article 32); (xi) when intending to make a recommendation under Article 29, paragraph (5); (xii) when intending to make a designation under Article 97, paragraph (1); and (xiii) when intending to rescind a designation under Article 99-12. (2) When the commission states its opinions pursuant to the provisions of the preceding paragraph, it must publicize the contents of the opinions without delay.

(Recommendations) Article 66-12 (1) If the commission exercises the authority under Article 105, Article 106, paragraphs (3) through (5), or paragraph (7) or (9) or Article 107, paragraph (2), (3), (6), or (8) which has been delegated thereto pursuant to Article 114, paragraph (1) or (2), and finds it necessary in order to ensure appropriate transactions of electricity, it may make a necessary recommendation to an electricity utility; provided, however, that this does not apply when the commission has made a recommendation pursuant to paragraph (1) of the following Article. (2) When the commission makes a recommendation pursuant to the preceding paragraph, and the electricity utility that has received the recommendation fails to follow the recommendation without justifiable grounds, the commission is to report this to the Minister of Economy, Trade and Industry. (3) When the commission makes a report pursuant to the preceding paragraph, it may seek a report from the Minister of Economy, Trade and Industry with regard to the measures taken based on its report.

Article 66-13 (1) When the commission exercises the authority under Article 105, Article 106, paragraphs (3) through (5), or paragraph (7) or (9) or Article 107, paragraph (2), (3), (6), or (8), which has been delegated thereto pursuant to Article 114, paragraph (1) or (2), and finds it particularly necessary in order to ensure appropriate transactions of electricity, it may make a necessary recommendation to the Minister of Economy, Trade and Industry; provided, however, that this does not apply when the commission has made a recommendation pursuant to paragraph (1) of the preceding Article. (2) When the commission makes a recommendation pursuant to the preceding paragraph, it must publicize the content thereof without delay. (3) When the commission makes a recommendation pursuant to paragraph (1), it may seek a report from the Minister of Economy, Trade and Industry with regard to the measures taken based on its recommendation.

(Proposal) Article 66-14 (1) When the commission finds it necessary in order to ensure fair transactions of electricity, in connection with the matters within the scope of its authority pursuant to the provisions of this Act, it may make a proposal to the Minister of Economy, Trade and Industry with regard to the measures that should be implemented in relation to electricity business. (2) When the commission makes a proposal pursuant to the preceding paragraph, it must publicize the content thereof without delay. (3) When the commission makes a proposal pursuant to paragraph (1), it may seek a report from the Minister of Economy, Trade and Industry with regard to the measures taken based on its proposal.

(Request for Submission of Materials) Article 66-15 When the commission finds it necessary in order to process the matters within the scope of its authority pursuant to the provisions of this Act, it may request the heads of the relevant administrative organs and other persons concerned to submit materials, express opinions, give explanations and provide other necessary cooperation.

(Publication) Article 66-16 The commission must publicize the status of the processing of its processes every year.

(Delegation to Cabinet Order) Article 66-17 Beyond what is provided for in this Part, necessary matters concerning the commission are specified by Cabinet Order.

Chapter VI Registered Safety Management Examination Bodies, Designated Examining Bodies, and Registered Investigation Bodies

Section 1 Registered Safety Management Examination Bodies

(Registration) Article 67 The registration set forth in Article 51, paragraph (3) or Article 55, paragraph (4) is made, pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, for each of the following categories of examinations (hereinafter simply referred to as an "examination category") upon application by a person who intends to conduct examinations (hereinafter collectively referred to as "safety management examinations"): (i) the examination set forth in Article 51, paragraph (3); and (ii) the examination set forth in Article 55, paragraph (4).

(Disqualification) Article 68 A person who falls under any of the following items may not be registered under Article 51, paragraph (3) or Article 55, paragraph (4): (i) a person who was subject to a fine or more severe punishment for violation of this Act or any order issued under this Act, if two years have not passed since the person finished serving the sentence or ceased to be subject its enforcement; (ii) a person whose registration was rescinded pursuant to Article 78, if two years have not passed since the date of rescission; and (iii) a corporation, any of whose officers in charge of its business falls under any of the preceding two items.

(Standards for Registration) Article 69 (1) The Minister of Economy, Trade and Industry must register a person who has applied for registration pursuant to Article 67 (hereinafter referred to as an "applicant for registration" in this paragraph) if that person conforms to all of the following requirements; in this case, necessary procedures for registration are specified by Order of the Ministry of Economy, Trade and Industry: (i) Safety management examinations are conducted by a person who falls under any of the following conditions, and at least two persons are assigned for each examination category: (a) a person who graduated from a university (excluding junior college) under the School Education Act (Act No. 26 of 1947) or a university under the former University Order (Imperial Order No. 388 of 1918) after completing a course in electric engineering, civil engineering, mechanical engineering or management engineering or any other course similar thereto, and has experience of being engaged for a total of at least two years in the services for construction, maintenance or operation of electric facilities or the services for safety management examinations; (b) a person who graduated from a junior college or college of technology under the School Education Act (including the first stage of a program at professional university under the same Act) or a professional training college under the former Professional Training College Order (Imperial Order No. 61 of 1903) after completing a course in electric engineering, civil engineering, mechanical engineering or management engineering or any other course similar thereto (in the case of the first stage of a program at a professional university under the same Act, a person who completed the first stage of the program), and who has been engaged for a total of at least four years in the services for construction, maintenance or operation of electric facilities or the services for safety management examinations; and (c) a person who has been engaged for a total of at least six years in the services for construction, maintenance or operation of electric facilities or the services for safety management examinations; (ii) the applicant for registration controlled by a person who installs electric facilities subject to safety management examinations pursuant to Article 51, paragraph (3) or Article 55, paragraph (4) (hereinafter referred to as "person installing electric facilities subject to examination" in this item) falls under none of the following conditions: (a) the applicant for registration is a stock company, and the person installing electric facilities subject to examination is its parent corporation (as prescribed in Article 879, paragraph (1) of the Companies Act); (b) more than half of the officers of the applicant for registration (in the case of a Membership Company (meaning a membership company prescribed in Article 575, paragraph (1) of the Companies Act), the officers in charge of its business) are officers or employees of the person installing electric facilities subject to examination (including those who have been officers or employees of the person installing electric facilities subject to examination in the past two years); and (c) The applicant for registration (or, in the case of a corporation, its representative officer) is an officer or employee of the person installing electric facilities subject to examination (or has been an officer or employee of the person installing electric facilities subject to examination in the past two years). (2) The registration set forth in Article 51, paragraph (3) or Article 55, paragraph (4) is to be made, with the following matters stated in the registry of safety management examination bodies: (i) the date of registration and registration number; (ii) the name and address of the person registered, as well as the name of the representative if the person is a corporation; and (iii) the examination category. (iv) the location of the place of business where the person registered is to conduct a safety management examination.

(Renewal of Registration) Article 70 (1) Unless the registration set forth in Article 51, paragraph (3) or Article 55, paragraph (4) is renewed at an interval of not less than three years as set by Cabinet Order, it ceases to be effective upon the end of the interval. (2) The provisions of the preceding three Articles apply mutatis mutandis to the renewal of registration set forth in the preceding paragraph.

(Obligation to Conduct a Safety Management Examination) Article 71 (1) A person registered under Article 51, paragraph (3) or Article 55, paragraph (4) (hereinafter referred to as a "registered safety management examination body") must conduct a safety management examination without delay when requested except when there are justifiable grounds not to do so. (2) A registered safety management examination body must conduct a safety management examination fairly by a means specified by Order of the Ministry of Economy, Trade and Industry. (3) When a registered safety management examination body conducts a safety management examination, it must have a person prescribed in Article 69, paragraph (1), item (i) take charge of the safety management examination.

(Notification of Change) Article 72 When a registered safety management examination body intends to change its name or the location of its place of business where a safety management examination is to be conducted, it must notify the Minister of Economy, Trade and Industry of the change by two weeks prior to the day when the change is scheduled to be made.

(Operational Rules) Article 73 (1) A registered safety management examination body must formulate rules concerning services for safety management examinations (hereinafter referred to as "operational rules" in this Section), and notify the Minister of Economy, Trade and Industry of the rules before commencing services for safety management examinations. The same applies when a registered safety management examination body intends to revise the rules. (2) Operational rules must provide for a means for implementing a safety management examination, a means for calculating the fees for safety management examinations, and other matters specified by Order of the Ministry of Economy, Trade and Industry.

(Suspension or Discontinuation of Operations) Article 74 If a registered safety management examination bodies intends to suspend or discontinue the all or part of the services for safety management examinations, it must notify the Minister of Economy, Trade and Industry to that effect in advance pursuant to provisions by Order of the Ministry of Economy, Trade and Industry.

(Keeping and Making Available for Public Inspection of Financial Statements) Article 75 (1) Within three months after the end of each fiscal year, a registered safety management examination body must prepare a property inventory, balance sheet, profit and loss statement or income and expenditure statement and business report (if these documents are prepared as electronic or magnetic records (meaning records produced by an electronic device, magnetic device or any other device not recognizable to human senses, which are used for data processing by a computer; hereinafter the same applies in this Article), or electronic or magnetic records are prepared instead of preparing the documents, the electronic or magnetic records must be included; these documents are hereinafter referred to as "financial statements, etc." in the following paragraph and Article 122-4) and keep them in its place of business for five years. (2) A person who installs electric facilities subject to a pre-use self-inspection or periodic operator inspection and other interested persons may, at any time during the business hours of the registered safety management examination body, make any of the following requests to the body; provided, however, that when making a request set forth in item (ii) or item (iv), the person or interested persons must pay the fee determined by the Registered Safety Management examination body: (i) when financial statements, etc. are prepared as written documents, a request for public inspection or copying of the written documents; (ii) a request for a transcript or extract of the written documents set forth in the preceding item; (iii) if financial statements, etc. are prepared as electronic or magnetic records, a request for public inspection or copying of the content of the electronic or magnetic records displayed by a device specified by Order of the Ministry of Economy, Trade and Industry; and (iv) a request for provision of the content of the electronic or magnetic records set forth in the preceding item by electronic or magnetic means specified by Order of the Ministry of Economy, Trade and Industry or a request for delivery of documents stating the content.

(Order for Conformity) Article 76 If the Minister of Economy, Trade and Industry finds that a registered safety management examination body has ceased to conform to any of the items of paragraph (1) of Article 69, the minister may order the registered safety management examination body to take any necessary measures to ensure conformity to the provisions of the items.

(Order for Improvement) Article 77 If the Minister of Economy, Trade and Industry finds that a registered safety management examination body is in violation of Article 71, the minister may order the registered safety management examination body to conduct a safety management examination or take other necessary measures to improve the means for implementing a safety management examination or other operational procedure.

(Rescission of Registration) Article 78 If a registered safety management examination body falls under any of the following items, the Minister of Economy, Trade and Industry may rescind the registration made under Article 51, paragraph (3) or Article 55, paragraph (4), or order the registered safety management examination body to suspend the all or part of the services for safety management examinations within a specified period: (i) the registered safety management examination body has violated Article 51, paragraph (5) (including when applied mutatis mutandis pursuant to Article 55, paragraph (6)), Article 71, Article 72, Article 73, paragraph (1), Article 74, Article 75, paragraph (1) or the next Article; (ii) the registered safety management examination body now falls under Article 68, item (i) or item (iii); (iii) the registered safety management examination body has refused a request made under the items of paragraph (2) of Article 75 without justifiable grounds; (iv) the registered safety management examination body has violated an order issued under the preceding two Articles; and (v) the registered safety management examination body has been registered under Article 51, paragraph (3) or Article 55, paragraph (4) by wrongful means.

(Bookkeeping) Article 79 (1) A registered safety management examination body must keep books and state in them the matters concerning the services for safety management examinations specified by Order of the Ministry of Economy, Trade and Industry. (2) The books set forth in the preceding paragraph must be preserved pursuant to provisions by Order of the Ministry of Economy, Trade and Industry.

(Services for Safety Management Examinations Performed by the Minister of Economy, Trade and Industry) Article 80 (1) The Minister of Economy, Trade and Industry may personally perform the all or part of the services for safety management examinations of a registered safety management examination body when: there is no person registered pursuant to Article 51, paragraph (3) or Article 55, paragraph (4); notification of the suspension or discontinuation of the all or part of the services for safety management examinations has been given pursuant to Article 74; the registration made under Article 51, paragraph (3) or Article 55, paragraph (4) has been rescinded or an order has been issued to the registered safety management examination body to suspend or discontinue the all or part of the services for safety management examinations pursuant to Article 78; it has become difficult for the registered safety management examination body to perform the all or part of the services for safety management examinations due to a disaster or otherwise; or the minister finds it necessary to do so for any other reasons. (2) When the Minister of Economy, Trade and Industry personally performs the all or part of the services for safety management examinations pursuant to the preceding paragraph, the transfer of the services for safety management examinations and other necessary matters are specified by Order of the Ministry of Economy, Trade and Industry.

Section 2 Designated Examining Body

(Designation) Article 81 (1) The designation set forth in Article 45, paragraph (2) is made pursuant to provisions by Order of the Ministry of Economy, Trade and Industry upon application by a person who intends to administer examination processes. (2) When the Minister of Economy, Trade and Industry makes the designation under Article 45, paragraph (2), the minister is not to administer examination processes.

(Disqualification) Article 82 A person who falls under any of the following items may not receive designation under Article 45, paragraph (2): (i) a person who was subject to a fine or more severe punishment for violation of this Act or any order issued under this Act, if two years have not passed since the person finished serving the sentence or ceased to be subject to its enforcement; (ii) a person whose designation was rescinded pursuant to Article 87, paragraph (2), if two years has not passed since the date of rescission; and (iii) a person, any of whose officers in charge of its business falls under any of the following conditions: (a) a person who falls under item (i); and (b) a person who was dismissed by an order under Article 84-5, if two years have not passed since the date of dismissal.

(Standards for Designation) Article 83 The Minister of Economy, Trade and Industry must not make the designation under Article 45, paragraph (2) unless no other person has received designation under the paragraph and the application for designation filed under the paragraph conforms to all of the following items: (i) the applicant's plan for the administration of the examination processes, which covers personnel, equipment, means of administering the examination processes and other matters, is appropriate for the competent administration of the examination processes; (ii) the applicant has a sufficient financial basis and technical capability to competently implement the plan for the administration of the examination processes set forth in the preceding item; (iii) the applicant is a general incorporated association or general incorporated foundation; and (iv) if the applicant is engaged in services other than examination processes, there is no risk that the applicant will fail to fairly administer the examination processes by performing the other services.

(Examiners) Article 84 (1) When a designated examining body administers examination processes, it must have its examiners administer the processes in determining whether or not an applicant for any of the types of chief engineer's license listed in Article 44, paragraph (1), items (i) through (iii) has the necessary knowledge and skills as a chief engineer. (2) A designated examining body must appoint examiners from among persons who satisfy the requirements specified by Order of the Ministry of Economy, Trade and Industry. (3) When a designated examining body appoints examiners, it must notify the Minister of Economy, Trade and Industry to that effect pursuant to provisions by Order of the Ministry of Economy, Trade and Industry. The same applies when any examiner is replaced.

(Operational Rules) Article 84-2 (1) A designated examining body must formulate rules concerning examination processes (hereinafter referred to as the "operational rules" in this Section), and obtain approval of the rules from the Minister of Economy, Trade and Industry. The same applies when a designated examining body intends to revise the rules. (2) The matters to be provided for by the operational rules are specified by Order of the Ministry of Economy, Trade and Industry. (3) If the Minister of Economy, Trade and Industry finds that the operational rules approved under paragraph (1) have become inappropriate for the fair administration of the examination processes, the minister may order the designated examining body to revise the operational rules.

(Suspension and Discontinuation of Examination Processes) Article 84-2-2 A designated examining body must not suspend or discontinue the all or part of the examination processes unless it is permitted by the Minister of Economy, Trade and Industry.

(Business Plans) Article 84-3 (1) Prior to the beginning of each business year (or without delay after designation under Article 45, paragraph (2) in the case of a business year that contains the date of designation), a designated examining body must prepare a business plan, and income and expenditure budget for the business year, and obtain approval of them from the Minister of Economy, Trade and Industry. The same applies when a designated examining body intends to revise them. (2) Within three months after the end of each business year, a designated examining body must prepare a business report and statement of accounts, and submit them to the Minister of Economy, Trade and Industry.

(Appointment and Dismissal of Officers) Article 84-4 The appointment and dismissal of an officer of a designated examining body is not effective unless approved by the Minister of Economy, Trade and Industry.

(Order of Dismissal) Article 84-5 If any officer or examiner of a designated examining body has violated this Act or any order issued under this Act or the operational rules, the Minister of Economy, Trade and Industry may order the designated examining body to dismiss the officer or examiner.

(Obligation of Confidentiality) Article 85 Current or former officers or employees (including examiners) of a designated examining body must not divulge secrets that they have become aware of in the course of administering the examination processes.

(Status of Officers and Employees) Article 85-2 With regard to the application of the Penal Code and other penal provisions, officers or employees (including examiners) of a designated examining body who are engaged in examination processes are regarded as personnel engaged in public services under laws and regulations.

(Order for Conformity) Article 86 (1) If the Minister of Economy, Trade and Industry finds that a designated examining body has ceased to conform to any of the items of Article 83 (excluding item (iii); hereinafter the same applies in this paragraph), the minister may order the designated examining body to take any necessary measures to ensure conformity to the provisions of the items. (2) Beyond what is provided for in the preceding paragraph, if the Minister of Economy, Trade and Industry finds it necessary for the enforcement of this Act, the minister may issue to a designated examining body an order necessary for the supervision of the examination processes.

(Rescission of Designation) Article 87 (1) If a designated examining body ceases to conform to Article 83, item (iii), the Minister of Economy, Trade and Industry must rescind the designation made under Article 45, paragraph (2). (2) If a designated examining body falls under any of the following items, the Minister of Economy, Trade and Industry may rescind the designation made under Article 45, paragraph (2), or order the designated examining body to suspend the all or part of the examination processes within a specified period: (i) the designated examining body now falls under Article 82, item (i) or item (iii); (ii) the designated examining body has violated Article 84, Article 84-2, paragraph (1), Article 84-2-2, Article 84-3, or the following Article; (iii) the designated examining body has not administered the examination processes in accordance with the operational rules approved under Article 84-2, paragraph (1); (iv) the designated examining body has violated an order issued under Article 84-2, paragraph (3), Article 84-5, or the preceding Article; and (v) the designated examining body has received designation under Article 45, paragraph (2) by wrongful means.

(Bookkeeping) Article 87-2 (1) A designated examining body must keep books and state in them the matters concerning the examination processes specified by Order of the Ministry of Economy, Trade and Industry. (2) The books set forth in the preceding paragraph must be preserved pursuant to provisions by Order of the Ministry of Economy, Trade and Industry.

(Examination Conducted by the Minister of Economy, Trade and Industry) Article 88 (1) The Minister of Economy, Trade and Industry may personally administer the all or part of the examination processes of a designated examining body when: the designated examining body suspends the all or part of the examination processes with permission granted under Article 84-2-2; an order is issued to the designated examining body to suspend the all or part of the examination processes pursuant to Article 87, paragraph (2); or the minister finds it necessary to do so because it has become difficult for the designated examining body to administer the all or part of the examination processes as a result of a natural disaster or otherwise. (2) When the Minister of Economy, Trade and Industry personally administers the all or part of the examination processes pursuant to the preceding paragraph, a designated examining body discontinues the all or part of the examination processes with permission granted under Article 84-2-2, or the Minister of Economy, Trade and Industry rescinds the designation of a designated examining body pursuant to Article 87, the transfer of the examination processes and other necessary matters are specified by Order of the Ministry of Economy, Trade and Industry.

Section 3 Registered Investigation Bodies

(Registration) Article 89 The registration set forth in Article 57-2, paragraph (1) is made, pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, upon application by a person who intends to perform investigation services as entrusted by a person maintaining and operating electric lines.

(Standards for Registration) Article 90 (1) The Minister of Economy, Trade and Industry must register a person who has applied for registration pursuant to the preceding Article if that person conforms to all of the following requirements. In this case, necessary procedures for registration are specified by Order of the Ministry of Economy, Trade and Industry: (i) the investigation services are performed by using the following measuring instruments: (a) insulation resistance meter; (b) ground resistance meter; (c) leakage current ammeter; (d) AC ammeter; and (e) AC voltmeter; (ii) the investigation services are performed by a person who falls under any of the following conditions: (a) a person who has obtained any of the types of chief engineer's license listed in Article 44, paragraph (1), items (i) through (iii); (b) a first-class electrician prescribed in Article 3, paragraph (1) of the Electrician Act (Act No. 139 of 1960) or second-class electrician prescribed in paragraph (2) of the Article; and (c) a person who graduated from a university, college of technology, high school or secondary education school under the School Education Act, a university under the former University Order, a professional training college under the former Professional Training College Order, or an industrial school under the former Secondary School Order (Imperial Order No. 36 of 1943) after completing a course in electric engineering or any other course similar thereto. (2) The registration set forth in Article 57-2, paragraph (1) is to be made, with the following matters stated in the investigation body registry: (i) the date of registration and registration number; and (ii) the name and address of the person registered, as well as the name of the representative if the person is a corporation.

Article 91 Deleted

(Obligation to Investigate) Article 92 (1) When a registered investigation body is entrusted with investigation services pursuant to Article 57-2, paragraph (1), it must perform the investigation services pursuant to provisions by Order of the Ministry of Economy, Trade and Industry under Article 57, paragraph (1); provided, however, that this does not apply if the registered investigation body is unable to obtain consent for the entry into the site where the electric facilities for general use are installed from the owner or possessor of the facilities. (2) If a registered investigation body is entrusted with investigation services pursuant to Article 57-2, paragraph (1) and fails to perform the investigation services or applies an inappropriate means for investigation, the Minister of Economy, Trade and Industry may order the registered investigation body to perform the investigation services or to improve the means for investigation.

(Discontinuation of Investigation Services) Article 93 If a registered investigation body discontinues the investigation services, it must notify the Minister of Economy, Trade and Industry to that effect without delay.

(Operational Rules) Article 94 (1) A registered investigation body must formulate rules concerning the investigation services (hereinafter referred to as "operational rules" in this Section), and notify the Minister of Economy, Trade and Industry of the rules before commencing the investigation services. The same applies when a registered investigation body intends to revise the rules. (2) Operational rules must provide for a means for performing the investigation services, a means for calculating the fee for investigation services, and other matters specified by Order of the Ministry of Economy, Trade and Industry.

(Rescission of Registration) Article 95 If a registered investigation body falls under any of the following items, the Minister of Economy, Trade and Industry may rescind the registration made under Article 57-2, paragraph (1): (i) the registered investigation body now falls under Article 68, item (i) or item (iii) as applied mutatis mutandis pursuant to the following Article; (ii) the registered investigation body has refused the request made under the items of paragraph (2) of Article 75 as applied mutatis mutandis pursuant to the following Article, without justifiable grounds; (iii) the registered investigation body has violated Article 92, paragraph (1), Article 93, or paragraph (1) of the preceding Article, or violated Article 75, paragraph (1) or Article 79 which are applied mutatis mutandis in the following Article; (iv) the registered investigation body has violated an order issued under Article 92, paragraph (2), or under Article 76 as applied mutatis mutandis pursuant to the following Article; and (v) the registered investigation body has been registered under Article 57-2, paragraph (1) by wrongful means.

(Application Mutatis Mutandis) Article 96 The provisions of Articles 68, 70, 75, 76, and 79 apply mutatis mutandis to a registered investigation body. In this case, the term "Article 78" in Article 68, item (ii) is deemed to be replaced with "Article 95", the phrase "a person who installs electric facilities subject to a pre-use self-inspection or periodic operator inspection" in Article 75, paragraph (2) is deemed to be replaced with "the owner or possessor of the electric facilities for general use subject to the investigation services performed by the registered investigation body", and. the phrase "items of paragraph (1) of Article 69" in Article 76 is deemed to be replaced with "items of paragraph (1) of Article 90".

Chapter VII Wholesale Electricity Exchange

(Designation) Article 97 (1) The Minister of Economy, Trade and Industry may, upon application, designate as a wholesale electricity exchange a general incorporated association, general incorporated foundation or other corporation specified by Cabinet Order which aims to achieve expansion of the opportunities for wholesale transactions of electricity for electricity utilities and ensure the formation of fair prices to be used as indicators for the transactions, thereby contributing to smooth transactions, and which is found to conform to the following standards with regard to the operations prescribed in the following Article (hereinafter referred to as "market launch operations"): (i) the applicant's plan for the administration of the market launch operations, which covers personnel, means of administering the market launch operations and other matters, is appropriate for the competent administration of the market launch operations; (ii) the applicant has a sufficient financial and technical basis to competently implement the plan for the administration of the market launch operations set forth in the preceding item; (iii) the composition of the officers or employees is unlikely to hinder the fair administration of the market launch operations; (iv) if the applicant is to conduct operations other than market launch operations, conducting the operations is unlikely to hinder the fair administration of the market launch operations; (v) the applicant is not a person whose designation was rescinded pursuant to Article 99-12, if two years has not passed since the date of rescission; and (vi) the applicant has no officer who falls under any of the following conditions: (a) a person who was sentenced to imprisonment or severer punishment, if two years have not passed since the person finished serving the sentence or ceased to be subject to its enforcement; and (b) a person who was subject to a fine or more severe punishment for violation of this Act or any order issued under this Act, if two years have not passed since the person finished serving the sentence or ceased to be subject to the sentence. (2) If a wholesale electricity exchange intends to change its name or address or the location of the office where market launch operations are to be conducted, it must notify the Minister of Economy, Trade and Industry of the change by two weeks prior to the day when the change is scheduled to be made.

(Operations) Article 98 A wholesale electricity exchange is to conduct the following operations: (i) launch a market for conducting sale and purchase transactions of electricity that are required for expanding the opportunities for wholesale transactions of electricity for electricity utilities and forming fair prices to be used as indicators for the transactions (referred to as a "wholesale electricity transaction market" in Article 99-2); (ii) conduct operations incidental to the operations set forth in the preceding item; and (iii) beyond what is set forth in the preceding two items, conduct operations necessary for achieving the purpose of the wholesale electricity exchange.

(Approval of Operational Rules) Article 99 (1) When a wholesale electricity exchange conducts market launch operations, it must formulate rules concerning the administration of market launch operations (hereinafter referred to as "operational rules" in this Chapter) and obtain approval of the rules from the Minister of Economy, Trade and Industry before commencing the operations. The same applies when a wholesale electricity exchange intends to revise the rules. (2) If the Minister of Economy, Trade and Industry finds that the operational rules approved under the preceding paragraph have become inappropriate for the fair and competent administration of the market launch operations, the minister may order the wholesale electricity exchange to revise the operational rules. (3) The matters to be stated in the operational rules and the standards for the approval set forth in paragraph (1) are specified by Order of the Ministry of Economy, Trade and Industry.

(Person Who May Conduct Sale and Purchase Transactions) Article 99-2 A person who may conduct sale and purchase transactions of electricity on a wholesale electricity transaction market (hereinafter simply referred to as "sale and purchase transactions" in this Section) is an electricity utility or a person equivalent thereto who is specified under the operational rules as having sufficient financial resources and credibility to competently administer the operations of wholesale transactions of electricity.

(Sale and Purchase Transactions) Article 99-3 (1) Sale and purchase transactions must be conducted by a bidding process or other means specified under the operational rules. (2) If a wholesale electricity exchange finds that a wrongful act is conducted or an unfair price is formed in sale and purchase transactions, it may restrict the sale and purchase transactions or take any other necessary measure for securing fairness of the sale and purchase transactions against persons who conduct the sale and purchase transactions, pursuant to the provisions of the operational rules. (3) When a wholesale electricity exchange takes the measure prescribed in the preceding paragraph, it must promptly notify the Minister of Economy, Trade and Industry to that effect.

(Publication of Sale and Purchase Transaction Volume) Article 99-4 Pursuant to provisions by Order of the Ministry of Economy, Trade and Industry, a wholesale electricity exchange must publicize the volume and price of sale and purchase transactions and other matters specified by Order of the Ministry of Economy, Trade and Industry.

(Prohibition of Discriminatory Treatment) Article 99-5 A wholesale electricity exchange must not unfairly treat persons who conduct sale and purchase transactions in a discriminatory manner, with regard to the management of market launch operations.

(Business Plans) Article 99-6 (1) Prior to the beginning of each business year (or without delay after designation under Article 97, paragraph (1) in the case of a business year that contains the date of designation), a wholesale electricity exchange must prepare a business plan and income and expenditure budget for the business year, and obtain approval of them from the Minister of Economy, Trade and Industry. The same applies when a wholesale electricity exchange intends to revise them. (2) A wholesale electricity exchange must within three months after the end of each business year prepare a business report and statement of accounts, and submit them to the Minister of Economy, Trade and Industry.

(Suspension or Discontinuation of Operations) Article 99-7 (1) A wholesale electricity exchange must not suspend or discontinue the all or part of the market launch operations unless it is permitted by the Minister of Economy, Trade and Industry. (2) If the Minister of Economy, Trade and Industry permits discontinuation of the whole of market launch operations pursuant to the provisions of the preceding paragraph, the designation relating to the permission ceases to be effective.

(Appointment and Dismissal of Officers) Article 99-8 The appointment and dismissal of an officer of a wholesale electricity exchange is not effective unless approved by the Minister of Economy, Trade and Industry.

(Order of Dismissal) Article 99-9 If any officer of a wholesale electricity exchange has violated this Act or any order issued under this Act or the operational rules, the Minister of Economy, Trade and Industry may order the wholesale electricity exchange to dismiss the officer.

(Obligation of Confidentiality) Article 99-10 Current or former officers or employees of a wholesale electricity exchange must not divulge or misappropriate secrets that they have become aware of in the course of administering the market launch operations.

(Supervision Orders) Article 99-11 If the Minister of Economy, Trade and Industry finds it necessary for securing the fair and competent administration of market launch operations, the minister may issue to a wholesale electricity exchange an order necessary for the supervision of the market launch operations.

(Rescission of Designation) Article 99-12 If a wholesale electricity exchange falls under any of the following items, the Minister of Economy, Trade and Industry may rescind its designation, or order the wholesale electricity exchange to suspend all or part of the market launch operations within a specified period: (i) the wholesale electricity exchange is found not to conform to the standards set forth in Article 97, paragraph (1), items (i) through (iv); (ii) the wholesale electricity exchange has ceased to conform to the standards set forth in Article 97, paragraph (1), item (vi); (iii) the wholesale electricity exchange has violated Article 97, paragraph (2), Article 99, paragraph (1), Article 99-3, paragraph (3), Articles 99-4 through 99-6, or Article 99-7, paragraph (1); (iv) the wholesale electricity exchange has not administered market launch operations in accordance with the operational rules approved under Article 99, paragraph (1); (v) the wholesale electricity exchange has violated an order issued under Article 99, paragraph (2), Article 99-9, or the preceding Article; and (vi) the wholesale electricity exchange has received designation under Article 97, paragraph (1) by wrongful means.

Chapter VIII Miscellaneous Provisions

(Conditions Attached to Registration) Article 100 (1) Conditions may be attached to registration, registration of change, license/permission or approval, and the conditions may be changed. (2) The conditions set forth in the preceding paragraph are limited to the minimum required for promoting public interest or ensuring successful implementation of the matters concerning the registration, registration of change, license/permission or approval, and must not impose any unreasonable obligation on the person who is to obtain the registration, registration of change, license/permission or approval.

(Hydraulic Power for Electricity Generation) Article 101 The Minister of Economy, Trade and Industry must conduct the necessary investigation for the development of hydraulic power for electricity generation.

Article 102 If the Minister of Economy, Trade and Industry finds it necessary for the development of hydraulic power for electricity generation, the minister may order a person who installs electric facilities for generation of electricity by means of hydraulic power to measure the discharge of the river where the electric facilities are installed and report on the results of the measurement pursuant to provisions by Order of the Ministry of Economy, Trade and Industry.

Article 103 (1) If an application has been filed for license or permission under Article 23 or Article 29, paragraph (2) of the River Act (Act No. 167 of 1964) or license or permission under Article 24 or Article 26, paragraph (1) of the Act (excluding license or permission concerning use of water supply (meaning use of water supply prescribed in the Article; hereinafter the same applies in paragraph (3)) by way of occupancy of river water which is subject to registration under Article 23-2 of the Act) for the purpose of using hydraulic power for electricity generation, the relevant municipal or prefectural governor or the head of the relevant designated city under Article 252-19, paragraph (1) of the Local Autonomy Act (Act No. 67 of 1947) (the city is hereinafter referred to as a "designated city") must report to the Minister of Economy, Trade and Industry to that effect, with an opinion attached thereto, and request the opinion of the Minister of Economy, Trade and Industry. (2) If the Minister of Economy, Trade and Industry is requested for an opinion pursuant to the preceding paragraph, the minister is to consult with the Minister of Land, Infrastructure, Transport and Tourism. (3) When an application has been filed to a municipal or prefectural governor or the head of a designated city for license or permission under Article 23 or Article 29, paragraph (2) of the River Act or license or permission under Article 24 or Article 26, paragraph (1) of the Act (excluding license or permission concerning use of water supply by way of occupancy of river water which is subject to the registration under Article 23-2 of the Act) (excluding the case prescribed in paragraph (1)), and the Minister of Economy, Trade and Industry finds it necessary in order to ensure the effective utilization of hydraulic power for electricity generation, the minister may make the necessary recommendations to the municipal or prefectural governor or the head of the designated city regarding the rulings under these provisions.

(Electric Facility Inspector) Article 104 (1) The Ministry of Economy, Trade and Industry and the Nuclear Regulation Authority have electric facility inspectors. (2) Electric facility inspectors of the Ministry of Economy, Trade and Industry engage in processes concerning the inspection set forth in Article 49, paragraph (1) or Article 54, or the examination set forth in Article 51, paragraph (3) or Article 55, paragraph (4). (3) Electric facility inspectors of the Nuclear Regulation Authority engage in processes concerning the inspection set forth in Article 49, paragraph (1) or Article 54, or the examination set forth in Article 51, paragraph (3). (4) The necessary matters concerning the qualification of an electric facility inspector are specified by Cabinet Order.

(Audits) Article 105 The Minister of Economy, Trade and Industry must audit the services and accounting of the general electricity transmission and distribution utilities and electricity transmission utilities every year.

(Collection of Reports) Article 106 (1) The competent minister may have a person who installs electric facilities for generation of electricity by means of nuclear power (hereinafter referred to as "facilities for nuclear power generation") submit reports or materials on the status of the services for assuring the safety of the facilities for nuclear power generation, to the extent necessary for the enforcement of Article 39, Article 40, Article 47, Article 49, and Article 50, pursuant to Cabinet Order provisions. (2) Beyond the cases referred to in the preceding paragraph, if the competent minister has had the person who installs facilities for nuclear power generation submit reports or materials, and finds it particularly necessary in order to ensure the safety of the facilities for nuclear power generation, the minister may have the business operator who has conducted maintenance and inspection of the facilities for nuclear power generation submit reports or materials on necessary matters, to the extent necessary for the enforcement of Article 39, Article 40, Article 47, Article 49, and Article 50. (3) Beyond the cases referred to in paragraph (1), the Minister of Economy, Trade and Industry may have an electricity retailer, etc., general electricity transmission and distribution utility, electricity transmission utility, specified electricity transmission and distribution utility, or electricity generation utility submit reports or materials on the status of the services or accounting, to the extent necessary for the enforcement of this Act, pursuant to Cabinet Order provisions. (4) The Minister of Economy, Trade and Industry may have a specified related business operator prescribed in Article 22-3, paragraph (1) (excluding an electricity retailer, etc., a general electricity transmission and distribution utility, an electricity transmission utility, a specified electricity transmission and distribution utility, and an electricity generation utility; referred to as a "specified related business operator of a general electricity transmission and distribution utility" in the following paragraph and paragraph (3) of the following Article) or a specified related business operator prescribed in Article 27-11-3, paragraph (1) (excluding an electricity retailer, etc., a general electricity transmission and distribution utility, an electricity transmission utility, a specified electricity transmission and distribution utility, and an electricity generation utility; referred to as a "specified related business operator of an electricity transmission utility" in the following paragraph and paragraph (3) of the following Article) submit reports or materials on necessary matters, to the extent necessary for the enforcement of Articles 22-3 through 23-3 or Articles 27-11-3 through 27-11-6. (5) If the Minister of Economy, Trade and Industry has had a general electricity transmission and distribution utility or an electricity transmission utility submit reports or materials pursuant to paragraph (3), and finds it particularly necessary in order to ensure the proper competitive relationship among electricity suppliers, the minister may have a specified related business operator, etc. of the general electricity transmission and distribution utility (excluding a specified related business operator of a general electricity transmission and distribution utility) or a specified related business operator, etc. of the electricity transmission utility (excluding a specified related business operator of an electricity transmission utility) submit reports or materials on necessary matters, to the extent necessary for the enforcement of Article 23, paragraph (2) or Article 27-11-4, paragraph (2). (6) Beyond the cases referred to in paragraph (1), the Minister of Economy, Trade and Industry may have a person who installs electric facilities for private use or a registered investigation bodies submit reports or materials on the status of the services, to the extent necessary for the enforcement of this Act, pursuant to Cabinet Order provisions. (7) The Minister of Economy, Trade and Industry may have the OCCTO submit reports or materials on the status of the services or accounting, to the extent necessary for the enforcement of this Act. (8) The Minister of Economy, Trade and Industry may have a registered safety management examination body submit reports or materials on the status of the services or accounting, to the extent necessary for the enforcement of this Act. (9) The Minister of Economy, Trade and Industry may have a designated examining body or wholesale electricity exchange submit reports or materials on the status of the services or accounting, to the extent necessary for the enforcement of this Act.

(On-site Inspections) Article 107 (1) The competent minister may have employees of the Ministry of Economy, Trade and Industry enter the factory, business office or other office or other workplace of a person who installs facilities for nuclear power generation, a person who processes a fuel assembly, or a person who welds boilers, etc. or vessels, etc. (limited to those relating to facilities for nuclear power generation), and inspect the facilities for nuclear power generation, books, documents, and any other articles of the person, to the extent necessary for the enforcement of Article 39, Article 40, Article 47, Article 49, and Article 50. (2) Beyond the on-site inspection prescribed in the preceding paragraph, the Minister of Economy, Trade and Industry may have employees of the Ministry of Economy, Trade and Industry enter the business office or other office or other workplace of an electricity utility, and inspect the status of the services or accounting, or the electric facilities, books, documents, and any other articles of the electricity utility, to the extent necessary for the enforcement of this Act. (3) The Minister of Economy, Trade and Industry may have employees of the Ministry of Economy, Trade and Industry enter the business office or other office or other workplace of a specified related business operator of a general electricity transmission and distribution utility or a specified related business operator of an electricity transmission utility, and inspect the status of the services or accounting or the books, documents, and any other articles of the specified related business operator, to the extent necessary for the enforcement of Articles 22-3 through 23-3 or Articles 27-11-3 through 27-11-6. (4) Beyond the on-site inspection prescribed in paragraph (1), the Minister of Economy, Trade and Industry may have employees of the Ministry of Economy, Trade and Industry enter the factory, business office or other office or other workplace of a person who installs electric facilities for private use or a person who welds boilers, etc., and inspect the electric facilities, books, documents, and any other articles of the person, to the extent necessary for the enforcement of this Act. (5) The Minister of Economy, Trade and Industry may have employees of the Ministry of Economy, Trade and Industry enter the site where electric facilities for general use (excluding those used for residential purposes) are installed, and inspect the electric facilities for general use, to the extent necessary for the enforcement of this Act. (6) The Minister of Economy, Trade and Industry may have employees of the Ministry of Economy, Trade and Industry enter the business office of the OCCTO, and inspect the status of the services or books, documents, and any other articles of the organization, to the extent necessary for the enforcement of this Act. (7) The Minister of Economy, Trade and Industry may have employees of the Ministry of Economy, Trade and Industry enter the business office or place of business of a registered safety management examination bodies or registered Investigation bodies, and inspect the status of the services or books, documents, and any other articles of the body, to the extent necessary for the enforcement of this Act. (8) The Minister of Economy, Trade and Industry may have employees of the Ministry of Economy, Trade and Industry enter the office of a designated examining body or wholesale electricity exchange, and inspect the status of the services or books, documents, and any other articles of the body or exchange, to the extent necessary for the enforcement of this Act. (9) The employees who conduct an on-site inspection pursuant to the preceding paragraphs must carry a certificate of identification and show it when requested by a person concerned. (10) If the Minister of Economy, Trade and Industry finds it necessary, the minister may have the OCCTO conduct an on-site inspection prescribed in paragraph (2); limited to those to be conducted in order to investigate the following items: (i) whether provision of information as prescribed by Article 28-43 has been appropriately made; and (ii) whether members of the OCCTO who received an instruction pursuant to Article 28-44, paragraph (1) have taken actions relating to the instruction. (11) When the Minister of Economy, Trade and Industry has the OCCTO conduct an on-site inspection pursuant to the preceding paragraph, the minister is to give instructions to the OCCTO with respect to the site subject to the on-site inspection and other necessary matters. (12) When the OCCTO has conducted an on-site inspection prescribed in paragraph (10) as instructed under the preceding paragraph, it must report the inspection results to the Minister of Economy, Trade and Industry. (13) The employees of the OCCTO who conduct an on-site inspection pursuant to paragraph (10) must carry a certificate of identification and show it when requested by a person concerned. (14) The authority under paragraphs (1) through (8) must not be construed as being vested for criminal investigation.

(Special Provisions for Hearing) Article 108 (1) If the Minister of Economy, Trade and Industry intends to reduce the service area pursuant to Article 16, paragraph (2), the minister must hold a hearing irrespective of the categories of procedures for hearing statements of opinions prescribed in Article 13, paragraph (1) of the Administrative Procedure Act (Act No. 88 of 1993). (2) Proceedings on the date of a hearing with respect to a ruling under Article 2-9, paragraph (1), Article 15, paragraph (1) or (2), Article 16, paragraph (1) or (2), Article 27-8, paragraphs (1) through (3), Article 27-9, paragraph (1), Article 27-21, paragraph (1), Article 28-23, paragraph (6), Article 78, Article 84-5, Article 87, Article 95, Article 99-9, or Article 99-12 must be open to the public.

(Request for Review of a Ruling by a Designated Examining Body) Article 109 A person who is dissatisfied with a ruling made by a designated examining body on the examination processes or the body's inaction may make a request for review to the Minister of Economy, Trade and Industry. In this case, with regard to the application of Article 25, paragraphs (2) and (3), Article 46, paragraphs (1) and (2), and Article 49, paragraph (3) of the Administrative Complaint Review Act (Act No. 68 of 2014), the Minister of Economy, Trade and Industry is deemed to be the higher administrative agency of the designated examining body.

(Hearing of Opinions in Procedures for a Request for Review) Article 110 (1) A ruling on a request for review with respect to a ruling made pursuant to this Act or an order issued under this Act or inaction thereof must be made after giving advance notice of a reasonable period to the requester of review and after the review officer provided in Article 11, paragraph (2) of the Administrative Complaint Review Act has heard opinions in public, except when the request for review is dismissed pursuant to Article 24 of the Act. (2) When holding a public hearing as set forth in paragraph (1), the requester for a review and any interested persons must be given the opportunity to present evidence and state their opinions. (3) The provisions of Article 31 of the Administrative Complaint Review Act do not apply to a request for review prescribed in paragraph (1), and the provisions of paragraphs (2) through (5) of the Article apply mutatis mutandis to the hearing of opinions under paragraph (1).

(Filing of Complaints) Article 111 (1) A person who has complaints about the electricity supply or the intermediary, brokerage or agency service for the conclusion of a retail service agreement by an electricity retailer, etc., general electricity transmission and distribution utility, electricity transmission utility, specified electricity transmission and distribution utility, or electricity generation utility may file the complaints with the Minister of Economy, Trade and Industry or the commission (the complaints to be filed with the commission are limited to those relating to transactions of electricity), with a written explanation of the reasons attached thereto. (2) A person who has complaints about the investigation services by a registered investigation body may file the complaints with the Minister of Economy, Trade and Industry, with a written explanation of the reasons attached thereto. (3) When the Minister of Economy, Trade and Industry and the commission receive complaints under the preceding two paragraphs (in the case of the commission, the complaints under paragraph (1)), they must handle them in good faith and notify the complainant of the results of the handling.

(Fees) Article 112 (1) All of the following persons must pay the fee determined by Order of the Ministry of Economy, Trade and Industry in light of the actual cost: (i) a person who intends to obtain a chief engineer's license pursuant to Article 44, paragraph (2), item (i) or by reason of having passed an examination for a chief electricity engineer's license the examination processes of which are administered by a designated examining body; (ii) a person who intends to take an examination for a chief electricity engineer's license; (iii) a person who applies for the re-issuance of a chief engineer's license; (iv) a person who intends to undergo an examination under Article 55, paragraph (4) (limited to when examination is conducted by the Minister of Economy, Trade and Industry); and (v) a person who intends to undergo a safety management examination conducted by the Minister of Economy, Trade and Industry pursuant to Article 80, paragraph (1). (2) All of the following persons must pay the fee determined by order of the competent ministry in light of the actual cost: (i) a person who intends to undergo inspection under Article 49, paragraph (1); (ii) a person who undergoes inspection under Article 54; and (iii) a person who intends to undergo examination under Article 51, paragraph (3) (excluding when it is conducted by a registered safety management examination body). (3) The fees paid under the preceding two paragraphs are regarded as income of the designated examining body if paid by the person who intends to obtain a chief engineer's license for which the designated examining body administers licensing processes as entrusted under Article 44-2, paragraph (1), or the person who intends to take an examination for a chief electricity engineer's license for which the designated examining body administers examination processes , or as national revenue if it is paid by other persons.

(Public Notice) Article 112-2 In any of the following cases, the Minister of Economy, Trade and Industry must make a public notice of the relevant matters in the Official Gazette: (i) the minister has made a designation under Article 45, paragraph (2) or Article 97, paragraph (1); (ii) the minister has made registration under Article 51, paragraph (3), Article 55, paragraph (4), or Article 57-2, paragraph (1); (iii) the minister has received notification under Article 57-2, paragraph (2), Article 72, Article 74, Article 93, or Article 97, paragraph (2); (iv) the minister has rescinded registration or ordered the suspension of the all or part of the services for safety management examinations pursuant to Article 78; (v) the minister personally administers the all or part of the services for safety management examinations pursuant to Article 80, paragraph (1), or ceases to administer the all or part of the services for safety management examinations that the minister has personally administered; (vi) the minister has granted permission under Article 84-2-2 or Article 99-7, paragraph (1); (vii) the minister has rescinded a designation pursuant to Article 87 or ordered the suspension of the all or part of the examination processes pursuant to paragraph (2) of the Article; (viii) the minister personally administers the all or part of the examination processes pursuant to Article 88, or ceases to administer the all or part of the examination processes that the minister has personally administered; (ix) the minister has rescinded registration pursuant to Article 95; and (x) the minister has rescinded registration pursuant to Article 99-12 or ordered the suspension of the all or part of the market launch operations.

(Relationship with Act on Control of Nuclear Source Materials, Nuclear Fuel Materials and Reactors) Article 112-3 (1) In applying the provisions of Article 47, paragraph (3) or Article 48, paragraph (3) to a construction plan for installation or modification of facilities for nuclear power generation implemented in relation to a construction plan including the design and construction means (hereinafter referred to as a "design and construction plan" in this Article) which has been approved pursuant to Article 43-3-9, paragraph (1) of the Act on Control of Nuclear Reactors, the design and construction plan is deemed to conform with the requirement listed in Article 47, paragraph (3), item (i) (limited to the part pertaining to the matter listed in Article 39, paragraph (2), item (i) and to the part that falls under the category of technical standards as set forth in Article 43-3-14 of the Act on Control of Nuclear Reactors; the same applies in the next paragraph) or with the requirement listed in Article 48, paragraph (3), item (i) (limited to the requirement listed in Article 47, paragraph (3), item (i) (limited to the part pertaining to the matter listed in Article 39, paragraph (2), item (i) and to the part that falls under the category of technical standards as set forth in Article 43-3-14 of the Act on Control of Nuclear Reactors); the same applies in the next paragraph). (2) In applying the provisions of Article 47, paragraph (3) or Article 48, paragraph (3) to a construction plan for installation or modification of facilities for nuclear power generation implemented in relation to a design and construction plan of which notification has been given pursuant to Article 43-3-10, paragraph (1) of the Act on Control of Nuclear Reactors (excluding when an order has been issued pursuant to paragraph (4) of the Article but notification has not yet been given pursuant to paragraph (1) of the Article), the design and construction plan is deemed to conform with the requirement listed in Article 47, paragraph (3), item (i) or with the requirement listed in Article 48, paragraph (3), item (i). (3) In applying the provisions of Article 49, paragraph (2) to specified electric facilities for business use which are nuclear reactors for electricity generation prescribed in Article 43-3-5, paragraph (2), item (v) of the Act on Control of Nuclear Reactors that have been confirmed under the provisions of Article 43-3-11, paragraph (3) of the Act on Control of Nuclear Reactors, the specified electric facilities for business use are deemed to conform with the requirement listed in item (ii) of the paragraph (limited to the part pertaining to the matter listed in Article 39, paragraph (2), item (i) and to the parts that fall under the category of technical standards as set forth in Article 43-3-14 of the Act on Control of Nuclear Reactors). (4) The provisions of Articles 51, 52, 54, and 55 do not apply to facilities for nuclear power generation which are subject to regulatory inspection under the Act on Control of Nuclear Reactors or pursuant to an order issued thereunder.

(Transitional Measures) Article 113 When enacting, revising or discontinuing a Cabinet Order, Order of the Ministry of Economy, Trade and Industry, or order of the competent ministry pursuant to this Act, necessary transitional measures may be provided for by Cabinet Order, or Order of the Ministry of Economy, Trade and Industry or order of the competent ministry to the extent considered reasonably necessary for that enactment, revision or abolition.

(Competent Ministers) Article 113-2 (1) The competent ministers in this Act (excluding Article 65, paragraphs 3 and 5) are ministers or commissions as specified in the respective items, according to categories of matters listed in each of the following items: (i) matters concerning facilities for nuclear power generation: the Nuclear Regulation Authority and Minister of Economy, Trade and Industry; and (ii) matters other than those listed in the preceding item: Minister of Economy, Trade and Industry; (2) The competent minister in Article 65, paragraphs 3 and 5 is the minister who is in charge of administration of the road, bridge, ditch, river, embankment or other public land prescribed in paragraph (1) of the Article. (3) Orders of the competent ministry in this Act are orders issued by the respective competent ministers specified in items according to the categories of matters listed in each of the items of paragraph (1).

(Delegation of Authority) Article 114 (1) The Ministry of Economy, Trade and Industry delegates the minister's authority under Article 106, paragraphs (3), (7), and (9) (limited to the authority relating to a wholesale electricity exchange), Article 107, paragraphs (2), (6), and (8) (limited to the authority relating to a wholesale electricity exchange) (the authority is limited to that concerning the provisions specified by Cabinet Order as provisions for securing appropriate transactions of electricity), as well as the minister's authority under Article 106, paragraphs (4) and (5) and Article 107, paragraph (3), to the commission; provided, however, that this does not preclude the Minister of Economy, Trade and Industry from personally exercising the authority to order submission of reports or materials. (2) The Ministry of Economy, Trade and Industry may, pursuant to Cabinet Order provisions, delegate the minister's authority under Article 105 and authority under Article 106, paragraphs (3), (7), and (9) (limited to the authority relating to a wholesale electricity exchange), Article 107, paragraphs (2), (6), and (8) (limited to the authority relating to a wholesale electricity exchange) (excluding the authority concerning the provisions specified by Cabinet Order referred to in the preceding paragraph) to the commission. (3) When the commission exercises the authority delegated thereto pursuant to the preceding paragraph, it must promptly report the result thereof to the Minister of Economy, Trade and Industry. (4) Pursuant to Cabinet Order provisions, the Minister of Economy, Trade and Industry may delegate part of the minister's authority under the provisions of this Act (excluding the authority delegated to the commission pursuant to paragraph (1) or (2)) to the Director of a Regional Bureau of Economy, Trade and Industry or the director of a Regional Industrial Safety and Inspection Department. (5) Pursuant to Cabinet Order provisions, the commission may delegate part of the authority delegated thereto pursuant to paragraph (1) or (2) to the director of a Regional Bureau of Economy, Trade and Industry. (6) With regard to the processes under the authority delegated to the director of a Regional Bureau of Economy, Trade and Industry pursuant to the preceding paragraph, the commission directs and supervises the director.

(Requests for Reviews to the Commission) Article 114-2 A request for review of an order of submission of reports or materials issued by the commission with the authority under Article 106, paragraphs (3) through (5), or paragraph (7) or (9) which has been delegated thereto pursuant to paragraph (1) or (2) of the preceding Article (including when the order is issued by the director of a Regional Bureau of Economy, Trade and Industry pursuant to the provision of paragraph (5) of the preceding Article) may be made only to the commission.

Chapter IX Penal Provisions

Article 115 (1) A person who damages electric facilities to be used for electricity business or caused interference with the functioning of electric facilities to be used for electricity business, thereby obstructing the generation, transformation, transmission or distribution of electricity, is subject to imprisonment for not more than five years or a fine of not more than one million yen. (2) A person who operates electric facilities to be used for electricity business, without due cause, thereby obstructing the generation, transformation, transmission or distribution of electricity, is subject to imprisonment for not more than two years or a fine of not more than 500,000 yen. (3) The same is imposed upon a person who engages in electricity business and fails to perform, without justifiable grounds, the services to maintain or operate electric facilities to be used for an electricity business, thereby causing interference with the generation, transformation, transmission or distribution of electricity. (4) A person who attempts to commit the offenses prescribed in paragraph (1) and paragraph (2) is subject to punishment.

Article 116 A person who falls under any of the following items is subject to imprisonment for not more than three years or a fine of not more than three million yen, or both: (i) a person who has conducted general electricity transmission and distribution in violation of Article 3; (ii) a person who has conducted electricity transmission in violation of Article 27-4; (iii) a person who has violated an order issued or a ruling made under Article 40 (limited to cases relating to facilities for nuclear power generation); and (iv) a person who has implemented a construction project to install or modify electric facilities in violation of Article 47, paragraph (1) (limited to cases relating to facilities for nuclear power generation).

Article 117 A person who falls under any of the following items is subject to imprisonment for not more than two years or a fine of not more than three million yen, or both: (i) a person who has suspended or discontinued all or part of the general electricity transmission and distribution in violation of Article 14, paragraph (1); (ii) a person who has refused to supply electricity in violation of Article 17, paragraph (1), (2), or (3) (limited to cases relating to an isolated island service) or Article 27-10, paragraph (1); and (iii) a person who has suspended or discontinued all or part of electricity transmission in violation of Article 14, paragraph (1) as applied mutatis mutandis pursuant to Article 27-12.

Article 117-2 A person who falls under any of the following items is subject to imprisonment for not more than one year or a fine of not more than one million yen, or both: (i) a person who has conducted electricity retail in violation of Article 2-2; (ii) a person who has allowed another person to use its name to conduct electricity retail in violation of Article 2-16, paragraph (1); (iii) a person who has allowed another person to operate electricity retail in its name in violation of Article 2-16, paragraph (2); (iv) a person who has engaged in electricity retail or electricity generation in violation of Article 22-2, paragraph (1) or Article 27-11-2, paragraph (1); (v) a person who has conducted specified electricity transmission and distribution without giving notification under Article 27-13, paragraph (1) or having given a false notification; (vi) a person who has provided a retail service in violation of Article 27-15; (vii) a person who has allowed another person to use its name to conduct specified electricity transmission and distribution (limited to business that provides a retail service; the same applies in the following item) in violation of Article 2-16, paragraph (1) as applied mutatis mutandis pursuant to Article 27-26, paragraph (2) by replacing terms; (viii) a person who has allowed another person to operate specified electricity transmission and distribution in its name in violation of Article 2-16, paragraph (2) as applied mutatis mutandis pursuant to Article 27-26, paragraph (2) by replacing terms; (ix) a person who has used electric facilities in violation of Article 49, paragraph (1) (limited to cases relating to facilities for nuclear power generation); (x) a person who has failed to make records or made false records, failed to preserve records, or failed to make reports or made false reports in violation of Article 55, paragraph (3); (xi) a person who has refused, obstructed or evaded the examination or inspection under Article 107, paragraph (1); (xii) a person who has violated an order of suspension of the services for safety management examinations issued under Article 78; and (xiii) a person who has failed to submit reports or materials under Article 106, paragraph (1), or submitted false reports or materials.

Article 117-3 An officer or employee of the designated examining body or wholesale electricity exchange who violates an order of suspension of examination processes or market launch operations issued under Article 87, paragraph (2) or Article 99-12 is subject to imprisonment for not more than one year or a fine of not more than one million yen.

Article 117-4 A person who falls under any of the following items is subject to imprisonment for not more than one year or a fine of not more than one million yen: (i) a person who has divulged a secret in violation of Article 44-2, paragraph (2) or Article 85; and (ii) a person who has divulged or misappropriated a secret in violation of Article 99-10.

Article 117-5 A person who has violated Article 28-29, paragraph (1) or (2) is subject to imprisonment for not more than one year or a fine of not more than 500,000 yen.

Article 118 A person who falls under any of the following items is subject to a fine of not more than three million yen: (i) a person who has violated an order issued under Article 2-12, paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-26, paragraph (2)), Article 2-17, paragraph (1), Article 2-17, paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-26, paragraph (3)), Article 2-17, paragraph (3) (including when applied mutatis mutandis pursuant to Article 27-26, paragraph (2)), Article 9, paragraph (5) (including when applied mutatis mutandis pursuant to Article 27-12), Article 18, paragraph (6) or (11), Article 20, paragraph (3), Article 21, paragraph (3), Article 22-3, paragraph (3), Article 23, paragraph (6), Article 23-2, paragraph (2), Article 23-3, paragraph (2), Article 26, paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-26, paragraph (1)), Article 27, paragraph (1) (including when applied mutatis mutandis pursuant to Article 27-12, Article 27-26, paragraph (1), and Article 27-29), Article 27, paragraph (2), Article 27-11, paragraph (3) or (4), Article 27-11-3, paragraph (3), Article 27-11-4, paragraph (5), Article 27-11-5, paragraph (2), Article 27-11-6, paragraph (2), Article 27-13, paragraph (5) (including when applied mutatis mutandis pursuant to paragraph (8) of the Article), Article 29, paragraph (6), Article 31, paragraph (1), Article 57, paragraph (3), or Article 92, paragraph (2); (ii) a person who has refused to supply electricity in violation of Article 17, paragraph (3) (excluding cases relating to an isolated island service) or Article 27-14; (iii) a person who has supplied electricity in violation of Article 18, paragraph (2), Article 21, paragraph (2), Article 24, paragraph (1), or Article 27-11, paragraph (2); (iv) a person who has refused to generate and/or supply electricity in violation of Article 27-28; (v) a person who has violated an order issued or a ruling made under Article 40 (excluding cases relating to facilities for nuclear power generation); (vi) a person who has failed to appoint a chief engineer in violation of Article 43, paragraph (1); and (vii) a person who has implemented a construction project to install or modify electric facilities in violation of Article 47, paragraph (1) (excluding cases relating to facilities for nuclear power generation).

Article 119 A person who falls under any of the following items is subject to a fine of not more than one million yen: (i) a person who has changed the matters set forth in Article 2-3, paragraph (1), item (iii) in violation of Article 2-6, paragraph (1); (ii) a person who has failed to give notification under Article 9, paragraph (1) (including when applied mutatis mutandis pursuant to Article 27-12) or Article 27-13, paragraph (7), or given a false notification; (iii) a person who has violated Article 9, paragraph (3) (including when applied mutatis mutandis pursuant to Article 27-12), or Article 27-13, paragraph (3) (including when applied mutatis mutandis pursuant to paragraph (8) of the Article); (iv) a person who has supplied electricity in violation of Article 20, paragraph (2); (v) a person who has failed to submit the necessary documents or submitted documents containing false statements in violation of Article 27-13, paragraph (2) (including when applied mutatis mutandis pursuant to paragraph (8) of the Article) or Article 27-27, paragraph (2); (vi) a person who has changed the matter set forth in Article 27-16, paragraph (1), item (iv) in violation of Article 27-19, paragraph (1); (vii) a person who has failed to give notification under Article 27-27, paragraph (1), or given a false notification; (viii) a person who has conducted electricity supply business in violation of Article 27-30, paragraph (1); (ix) a person who has violated an order issued under Article 34, paragraph (1); (x) a person who has implemented a construction project to install or modify electric facilities in violation of an order issued under Article 48, paragraph (4); and (xi) a person who has used electric facilities in violation of Article 49, paragraph (1) (excluding cases relating to facilities for nuclear power generation).

Article 119-2 A founder, officer or employee of the OCCTO who commits any of the following violations is subject to a fine of not more than 300,000 yen: (i) entering a false statement in a written application or an attached document under Article 28-14, paragraph (1) or (2); (ii) failing to send a supply plan under Article 29, paragraph (2) (including when applied mutatis mutandis pursuant to paragraph (4) of the Article); (iii) failing to submit reports or materials under Article 106, paragraph (7), or submitting false reports or materials; and (iv) refusing, obstructing or evading inspection under Article 107, paragraph (6).

Article 119-3 An officer or employee of the designated examining body or wholesale electricity exchange who commits any of the following violations is subject to a fine of not more than 300,000 yen: (i) discontinuing all examination processes or market launch operations without obtaining permission under Article 84-2-2 or Article 99-7, paragraph (1); (ii) failing to state the matters prescribed in Article 87-2, paragraph (1), in violation of the paragraph, or making false statements; (iii) failing to preserve books, in violation of Article 87-2, paragraph (2); (iv) failing to submit reports or materials under Article 106, paragraph (9), or submitting false reports or materials; and (v) refusing, obstructing or evading inspection under Article 107, paragraph (8).

Article 120 A person who falls under any of the following items is subject to a fine of not more than 300,000 yen: (i) a person who has failed to give notification under Article 2-7, paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-29), Article 2-8, paragraph (1), Article 7, paragraph (4) (including when applied mutatis mutandis pursuant to Article 8, paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-12) and Article 27-12), Article 20, paragraph (1), Article 21, paragraph (1), Article 27-11, paragraph (1), Article 27-20, paragraph (1), Article 27-24, paragraph (2), Article 27-25, paragraph (1) (including when applied mutatis mutandis pursuant to Article 27-29), Article 28-3, paragraph (1), Article 29, paragraph (1) or paragraph (3), Article 42, paragraph (1) or paragraph (2), Article 43, paragraph (3), Article 47, paragraph (4) or paragraph (5), Article 51-2, paragraph (3), Article 57-2, paragraph (2), or Article 74, or who has given a false notification; (ii) a person who has failed to deliver the document prescribed in Article 2-14, paragraph (1), in violation of the paragraph (including when applied mutatis mutandis pursuant to Article 27-26, paragraph (3); hereinafter the same applies in this item), or delivered a document in which false information is stated or displayed; (iii) a person who has violated Article 18, paragraph (12) (including when applied mutatis mutandis pursuant to Article 20, paragraph (4) and Article 21, paragraph (4)); (iv) a person who has failed to make reports under Article 23-4, paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-12) or Article 34, paragraph (2), or made false reports; (v) a person who has failed to make records or made false records, or failed to preserve records, in violation of Article 26, paragraph (3) (including when applied mutatis mutandis pursuant to Article 27-26, paragraph (1)), Article 51, paragraph (1), Article 52, paragraph (1), or Article 55, paragraph (1) (excluding cases relating to facilities for nuclear power generation); (vi) a person who has violated an order issued under Article 42, paragraph (3); (vii) a person who has implemented a construction project to install or modify electric facilities in violation of Article 48, paragraph (1) or paragraph (2); (viii) a person who has refused, obstructed or evaded an examination or inspection under Article 51, paragraph (3), Article 54, or Article 55, paragraph (4) (excluding cases relating to facilities for nuclear power generation) or Article 107, paragraphs (2) through (5) or paragraph (7); (ix) a person who has violated an order issued or a ruling made under Article 56, paragraph (1); (x) a person who has failed to state the matters prescribed in Article 57, paragraph (4), or Article 79, paragraph (1) (including when applied mutatis mutandis pursuant to Article 96), in violation of those paragraphs (including when applied mutatis mutandis pursuant to Article 96), or made false statements; (xi) a person who has failed to preserve books, in violation of Article 57, paragraph (5), or Article 79, paragraph (2) (including when applied mutatis mutandis pursuant to Article 96); and (xii) a person who has failed to submit reports or materials under Article 102 or Article 106, paragraphs (2) through (6) or paragraph (8), or submitted false reports or materials.

Article 121 If a representative of a corporation or an agent or employee of a corporation or an individual commits any of the violations prescribed in the following items, with regard to the business of the corporation or individual, not only the offender but also the corporation is subject to the fine prescribed in the relevant item or the individual is subject to the fine prescribed in the following Articles: (i) Article 116, item (iii) or (iv): a fine of not more than 300 million yen; (ii) Article 117-2 (excluding the part concerning items (i) through (viii) and item (xii)): a fine of not more than 100 million yen; and (iii) Article 116, item (i) or (ii), Article 117, Article 117-2 (limited to the part concerning items (i) through (viii) and item (xii)), Article 118, Article 119, or the preceding Article: the fines prescribed in the respective Articles.

Article 122 A person who falls under any of the following items is subject to a civil fine of not more than one million yen: (i) a person who has violated an order issued under Article 9, paragraph (5) as applied mutatis mutandis pursuant to Article 13, paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-12), Article 27-3 (including when applied mutatis mutandis pursuant to Articles 27-12 and 27-29), or Article 46-17, paragraph (1); (ii) a person who has violated Article 22, paragraph (1) (including when applied mutatis mutandis pursuant to Article 27-12) or Article 27-2, paragraph (1) (including when applied mutatis mutandis pursuant to Articles 27-12 and 27-29); (iii) a person who has failed to publicize necessary matters, in violation of Article 22, paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-12), or publicized false matters; and (iv) a person who has failed to submit documents under Article 27-2, paragraph (2) (including when applied mutatis mutandis pursuant to Articles 27-12 and 27-29), or submitted false documents.

Article 122-2 A founder or officer of the OCCTO who commits any of the following violations is subject to a civil fine of not more than 200,000 yen: (i) failing to receive the approval of the Minister of Economy, Trade and Industry when it is necessary to receive the approval pursuant to the provisions of this Act; (ii) failing to complete registration, in violation of a Cabinet Order under the provisions of Article 28-8, paragraph (1); (iii) violating the provisions of Article 28-10, paragraph (2); (iv) failing to give a public notice under the provisions of Article 28-13, paragraph (2) or giving a false public notice; (v) conducting business other than those prescribed in Article 28-40; (vi) failing to make a report, in violation of the provisions of Article 28-44, paragraph (2) or (3), or making a false report; (vii) violating an order issued under Article 28-46, paragraph (3) or Article 28-51; (viii) failing to give notification under Article 28-46, paragraph (4), or giving a false notification; and (ix) failing to submit documents under Article 28-49, paragraph (1) or (2), or submitting false documents.

Article 122-3 A person who violates Article 28-7, paragraph (2) is subject to a civil fine of not more than 200,000 yen.

Article 122-4 A person who has failed to keep financial statements, etc., failed to state necessary matters in financial statements, etc. or made false statements, in violation of Article 75, paragraph (1) (including when applied mutatis mutandis pursuant to Article 96), or refused a request made under the items of Article 75, paragraph (2) (including when applied mutatis mutandis pursuant to Article 96) without justifiable grounds, is subject to a civil fine of not more than 200,000 yen.

Article 123 A person who falls under any of the following items is subject to a civil fine of not more than 100,000 yen: (i) a person who has failed to give notification under Article 2-6, paragraph (4), Article 2-8, paragraph (2), Article 9, paragraph (2), or Article 13, paragraph (1) (including when these provisions are applied mutatis mutandis pursuant to Article 27-12), Article 27-13, paragraph (9), Article 27-19, paragraph (4), Article 27-25, paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-29), Article 27-27, paragraph (3), Article 27-30, paragraph (4) or (5), Article 28-3, paragraph (2), Article 53, Article 55-2, paragraph (2), or Article 93, or has given a false notification; (ii) a person who has transferred facilities or made them subject to any rights other than ownership in violation of Article 9, paragraph (3) as applied mutatis mutandis pursuant to Article 13, paragraph (2) (including when applied mutatis mutandis pursuant to Article 27-12); and (iii) a person who has failed to return a chief engineer's license without justifiable grounds, in violation of an order issued under Article 44, paragraph (4).