How to Lower Your Utility Bills in Japan: Switching Electricity & Gas Providers (For Foreigners)

Your monthly electricity and gas bills (utility costs) can potentially be reduced by reviewing the company and plan you contract with. In Japan, retail electricity and city gas have been deregulated, so you can now choose your own provider and plan. This article explains, for foreigners living in Japan, how to switch electricity/gas providers to review your utility bills, whether it works in rentals, and points to be careful about.

① Electricity and gas are now "yours to choose" (deregulation)

In Japan, retail electricity was fully deregulated in 2016 and retail city gas in 2017. You can now choose not only your region's major electricity/gas company, but also plans from newer entrants (the so-called "new power companies," or shin-denryoku).

• You can contract with companies other than your area's major provider (TEPCO, Kansai Electric, Tokyo Gas, Osaka Gas, etc.)
• Some companies offer a "set plan" that bundles electricity and gas with the same company
• In many cases, you can switch electricity/city gas providers even in a rental (except for the cases in ④ below)

② How switching can change your utility bills

Electricity and gas charges are mainly made up of a "basic charge" and a "metered charge" based on how much you use. The setting of these charges, point rewards, and set discounts differ by company and plan, so reviewing them may make bills cheaper in some cases.

• Differences in basic/metered charges: unit prices differ by company and plan
• Electricity-and-gas set discounts: some plans offer a discount when you bundle them
• Points and perks: some plans give points based on your spending

However, rates vary greatly by region, season, usage, and plan, so it is not the case that everyone will necessarily save. It is important to estimate and compare using your current usage.

③ Steps to switch

1. Check your current usage: confirm your monthly usage and charges on your meter-reading slip (the electricity/gas "usage notice") or your online account
2. Compare and estimate rates: enter your postal code and usage on each company's site or a comparison site to estimate plans
3. Apply to the new company: apply online or by phone. In many cases the new company handles the cancellation with your current company, so you generally do not need to cancel yourself
4. Smart meter installation (if needed): if one is not yet installed it may need replacing. In many cases this is free and generally done without an outage or your attendance
5. Switch complete: after you apply, the change to the new company typically takes effect from your next meter-reading date

④ Things to check before switching

Depending on your home and contract situation, switching may not be possible or may be difficult. Check the following points before you apply.

• Rentals with "bulk power purchase": if the whole building has a single high-voltage bulk power contract, you may not be able to change electricity company individually
• Propane gas (LPG): not covered by city-gas deregulation; prices are set freely by each company. In a rental, you may not be able to choose or change the company (depending on the owner's/management company's contract)
• All-electric homes: some properties need no gas contract. The way you choose an electricity plan may differ from an ordinary household
• Cancellation fees and contract terms: some plans set a minimum usage period or a cancellation fee
• Payment methods: check whether credit card or bank-account debit is supported (see also Opening a bank account and How to get a credit card)
• Foreign-language support: some companies offer foreign-language web pages or inquiry desks

⑤ How to compare rates (using comparison sites)

There are many electricity/gas companies and plans can be complex. Using a comparison site that estimates and compares multiple companies' plans at once makes it easier to get a sense of how much things would change versus your current contract. Some services let you check recommended plans and estimates just by entering your postal code and monthly usage.

PRCompare electricity & gas plans

By entering your postal code and current usage, there are comparison sites that estimate and compare plans from multiple electricity/gas companies at once. You can check roughly how much things would change versus your current contract.

Compare electricity & gas rates →

*Rates and campaign conditions vary by company, plan, region and usage. Check the latest conditions on each company's or the comparison site's page.

After comparing, staying with your current contract may sometimes be the better choice. The estimates shown are only a guide, so check the latest rates and conditions on each company's official site before signing.

⑥ Points to be careful about when switching

• It will not necessarily be cheaper: in low-usage households, switching may not lower bills much
• Check cancellation terms: check for any minimum usage period or cancellation fee
• Common variable factors: the "fuel cost adjustment" and the "renewable energy power promotion surcharge (renewable surcharge)" apply at most companies and vary over time
• Campaign conditions: discounts and points may have eligibility conditions and time limits
• Handle it together when moving: when you move, you also need start/cancellation procedures. See also How to set up electricity, gas & water and Moving procedures

When reviewing fixed costs, it is effective to also review your communication costs. See How to choose a budget SIM. For outages and disaster readiness, see the disaster preparedness guide.

Frequently Asked Questions

Can I change my electricity or gas company in a rental?In many cases you can switch electricity and city gas providers even in a rental. However, in buildings with a bulk power-purchase contract for the whole building, or properties using propane gas (LPG), you may not be able to choose or change the provider individually. Check with the management company or owner before signing.

Is there any construction or power outage when I switch electricity company?Switching electricity company generally involves no construction and no outage. If a smart meter is not yet installed it may need to be replaced, but in many cases this is free and is generally done without an outage or your attendance.

Do I have to cancel with my current company myself?In many cases the new company you sign up with handles the cancellation with your current company on your behalf, so you generally do not need to cancel yourself. Check the process when you apply.

Can I also change the company for propane gas (LPG)?Propane gas is not covered by city-gas deregulation, and its prices are set freely by each company. In an owned home you may be able to change companies, but in a rental it can be hard to change depending on the owner's or management company's contract.

Will switching companies always lower my utility bills?It will not necessarily be cheaper. Rates vary by region, season, usage, and plan. We recommend estimating with your current usage and comparing against your current contract before deciding.