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Ennet to Begin Dynamic Energy Pricing Across Japan, Nikkei Says

Ennet Corp., a privately-owned independent power producer in Japan, is planning to vary the price it charges customers for electricity based on peak and off-peak demand, the Nikkei newspaper reported today, without saying where it got the information.

The system, known as dynamic pricing, is designed to reduce energy consumption and reward customers that reduce their usage in peak hours, the Nikkei said. Ennet plans to introduce the system in July, according to the report.

Ennet, which has about 10,000 corporate customers in Japan, including department store operator Isetan Mitsukoshi Holdings Ltd., says the pricing system will lower energy bills by as much as 5 percent compared with fixed-rate contracts, the newspaper reported.

One option for customers includes a tripling of electricity prices to about 50 yen per kilowatt-hour from 1 p.m. to 4 p.m. in exchange for a 2 yen discount at other times, the Nikkei said.

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