ANRE to step up information outreach to consumers, pomote shift to natural gas
The Agency for Natural Resources and Energy (ANRE) of the Ministry of Economy, Trade and Industry (METI) set out a policy to strengthen efforts to raise awareness among local governments and consumers of fuel switching. It will step up efforts to disseminate information on how fuel switching contributes to GX and to share good practices, while also improving the visibility of information such as pipeline operators’ spare capacity. Firstly, fuel switching to natural gas will be facilitated that aims to shift to utilize synthetic methane with existing facilities.This was set out at the meeting of the Gas Business Environment Development Working Group, under the Advisory Committee for Natural Resources and Energy(advisory body to the METI)
While there is some potential for fuel switching, particularly in rural areas, progress has been insufficient. Therefore, the meeting participants shared the importance of raising awareness of the role of natural gas in the transition to carbon neutrality. They also agreed on the importance of business operators advancing dialogue with customers and developing fuel-switching projects, with a view to enabling the full-scale introduction of synthetic methane in the future.
Regarding fuel switching, several committee members pointed out the need for additional supportive measures. Committee member So Hirano, Professor at Seijo University, commented, “In the case of fuel switching as well, the price gap with existing fuels is presumed to be a key factor. Measures to narrow this price gap with existing fuels are also necessary.” In light of these opinions, ANRE plans to first categorize the types of entities that should be supported.
They also discussed the wheeling charge system for city gas pipeline operators. Since revisions to the wheeling charge require regulatory approval, it is difficult to respond flexibly to rapid environmental changes such as rising prices. At the meeting, there was broad agreement that rising prices and other factors should be reflected in the wheeling charges, on the premise that the current approval system would remain in place. An approach was presented in which changes in costs would be incorporated for each cost item, using indicators such as the Consumer Price Index (CPI) and the Construction Work Deflator. Regarding “variable revision,” under which only increases or decreases in cost items for which the use of indicators is deemed inappropriate would be reflected in charges, discussions will be held on which cost items should be covered, among other points.