Looop Denki is an electricity retailer in Japan. Despite being new to the industry, as of December 2018 it has created a strong presence in the market and created over 150,000 contracts for electricity. They offer plans that are simple to set-up and have no base charges! Find out more about their top-notch service and competitive plans:
What’s special about Looop? Looop has a 0 yen base charge and only charges a single price for electricity. While other major electricity providers often charge for the user’s amperage/electricity capacity (base charge) and use a 3-tiered pricing model that charges different rates based on the amount of electricity used.
Looop Co. Ltd. was founded in 2011, after the Great East Japan Earthquake to develop self-sufficient/free-standing and environmentally-friendly electricity options. Since the liberalisation of the electricity market in 2016, Looop has extended its business model to become an electricity retailer for the whole of Japan, except for Okinawa and some remote islands.
Its mission is to spread renewable energy around the world and create a future where energy is freed from constraints, allowing it to be easily accessible by everyone.
It competes with major electricity companies such as TEPCO and KEPCO, through its simple pricing and billing tactics. Major power companies determine base fee charges by ampere capacity and have 3-tiers of pricing; the more electricity you use, the higher the electricity per kWh rate you pay. However, Looop has a 0 yen base charge and charges a single price for electricity. It does this because it has the advantage of lower fixed costs compared to other providers.
Looop procures its electricity from solar power plants it has invested in as well as from general electricity generators such as Tokyo Electric Power and Kansai Electric Power via JPEX (Japan Wholesale Power Exchange). As an electricity retailer, Looop only manages the billing of electricity. Whereas supply and distribution of electricity are carried out through the grid, and the infrastructure in a particular area is managed by a regulated monopoly. In Tokyo, it is TEPCO that is in charge of managing the infrastructure. Therefore, the electricity you receive will be the same regardless of who you choose to contract with. For more information on the electricity market in Japan, be sure to read our overview.
Looop sells products such as a variety of solar generation kits and even small wind turbines, while also providing a retailing service.
Looop offers “business plans” for large scale, high voltage consumers (generally those who require more than 60 amps such as shops, small offices and restaurants), while also offering “home plans” to small scale, low voltage consumers, (households). In October 2019, Looop also started retailing city gas under the name of Looop Gas. Their gas plans are currently only available in the Kanto area (which includes Tokyo).
What is city gas? Find out more about city gas in our guide comparing it to liquified propane.
Plans and Pricing
This article will focus more on Looop’s retailing services and compare its plans with other electricity providers in the area:
Looop Electric’s Home Plans and Business Plans have a 0 yen base fee, meaning all you have to do is pay the electricity fee according to your usage. However, you will need to pay fuel adjustment costs and renewable energy power generation surcharge. These costs are common and unavoidable across Japan, and the surcharge is part of the (Feed-In-Tax) FIT regime.
Looop Electric Charges =
Pay-as-you-use charge (unit price x kWh) ± Fuel cost adjustment + Renewable Energy Generation Surcharge Fuel cost adjustments = these are costs that automatically adjust the electricity rate every month according to fuel price fluctuations
Renewable Energy Surcharge = this is added to support investment into renewable energy and help Japan reduce its carbon emissions.
|Area||Base fee||House Plan (tax included)||Business Plan (tax included)|
|Hokkaido Electric Power (Hokkaido residents)||0 ¥/month||29.50 ¥/kWh||31.50 ¥/kWh|
|Tohoku Electric Power (Tohoku residents)||0 ¥/month||26.40 ¥/kWh||27.50 ¥/kWh|
|TEPCO (Kanto residents)||0 ¥/month||26.40¥/kWh||27.50 ¥/kWh|
|Chubu Electric Power (Chubu residents)||0 ¥/month||26.40 ¥/kWh||26.40 ¥/kWh|
|Hokuriku Electric Power (Hokuriku residents)||0 ¥/month||21.30 ¥/kWh||25.40 ¥/kWh|
|Kansai Electric Power (Kansai residents)||0 ¥/month||22.40 ¥/kWh||23.40 ¥/kWh|
|Chugoku Electric (for residents of Chugoku region)||0 ¥/month||24.40 ¥/kWh||23.40 ¥/kWh|
|Shikoku Electric Power (for residents of Shikoku)||0 ¥/month||24.40 ¥/kWh||25.40 ¥/kWh|
|Kyushu Electric Power (Kyushu residents)||0 ¥/month||23.40 ¥/kWh||24.40 ¥/kWh|
How does this pricing tactic compare with other electricity providers? Other electricity providers like TEPCO and KEPCO often charge a base rate and often use a 3-tier pricing model. This means that consumers are charged different rates depending on the amount of electricity they used (kWh). The more electricity you use, the higher the electricity rate per kWh you pay.
|Price per kWh ¥ (tax included)|
Metered light B/C
|Kansai Electric Power
Metered light A / B
|0-up to 120 kWh||19.88 ¥||15-120 kWh||20.32 ¥|
|Up to 120-300 kWh||26.48 ¥||120-300 kWh or more||25.80 ¥|
|300 kWh or more||30.57 ¥||300 kWh or more||29.29 ¥|
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