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Minden Electric Introduces Price Risk Mitigation Option

Minden Electric, operated by the Tokyo-based company UPDATER, launched a new price risk mitigation option as part of its market-linked plans for corporate customers. This innovative option is designed specifically for organizations that want to benefit from market-linked pricing while minimizing the potential risks associated with price surges, particularly during geopolitical tensions.

Mechanism of the New Option

The price risk mitigation option allows for an automatic discount on the excess cost when the monthly average price in the electricity wholesale market exceeds a predetermined reference price set at the time of contracting. This means that companies can still enjoy cost benefits derived from market price fluctuations, while effectively managing additional costs during periods of market volatility.

Understanding Market Plans

In the energy sector, companies typically choose between two main pricing plans: the fixed-priced plan, which guarantees stable rates, and the market-linked plan, which is subject to fluctuations in the wholesale electricity market. The market-linked plan can offer substantial savings when prices are low; however, it carries significant risks when prices spike.

For example, during the Ukraine crisis from 2021 to 2022, wholesale prices surged significantly, leading to an increased cost of electricity procurement for many corporations utilizing a market-linked plan. As of 2026, rising tensions in the Middle East have again pushed market prices up, exacerbating concerns regarding corporate electricity procurement risks.

Addressing Corporate Needs

With some new electricity companies halting new applications from corporate clients, the demand for risk mitigation solutions has intensified. Although tensions in the Middle East are starting to ease, many corporations express a need for options that allow them to benefit from market advantages while limiting their exposure to dramatic price surges. Recent reports indicate that trading volumes in electricity futures are expected to hit record levels by 2025, reflecting an increasing focus on risk management.

In response to these market dynamics, several energy providers have begun to offer upper-limit caps on their market-linked plans aimed at corporate clients. Minden Electric remains committed to maintaining 100% renewable energy while providing solutions that do not compromise cost and stability for businesses.

Details of the New Option

This new option will apply to the months where the average price in the wholesale electricity market surpasses the set reference price. The reference price is determined by the circumstances of the procurement power at the time of the contract but remains unchanged throughout the contract's duration. In practical terms, the service incurs a utilization fee of JPY 1.00 per kWh (including tax), which is added to the monthly electricity bill, regardless of whether discounts are applied in a given month.

Example Calculation

For instance, consider a medium-sized factory with a contracted power of 178 kW and an annual power usage of 384,000 kWh. If the reference price is JPY 25 per kWh and the market's average wholesale price hits JPY 30 per kWh for a full year, the factory can expect a discount of around JPY 1.92 million annually, based on the excess amount exceeding JPY 25.

Eligibility Criteria

Eligible plans include:

• - Green Direct Standard
• - Green Direct Renewable Energy 100%
• - Green Direct Premium RE100

The available service is applicable across all regions excluding Okinawa and covers low, high, and special high voltage. The contractual period for this option extends until the March 2027 billing cycle. The total discount will depend on the power procurement situation and may vary based on the region.

About Minden Electric

Minden Electric prides itself on supplying electricity generated from 100% transparent and renewable sources. With a network of over 1,100 renewable energy plants throughout Japan, the company offers fully traceable electricity, allowing clients to track the origins of their power down to a 30-minute interval. This service supports not only corporate sustainability goals but also meets the standards set by various international initiatives.

UPDATER continues to innovate and engage with modern energy challenges while remaining committed to sustainability and corporate social responsibility. For more information on corporate services, visit Minden Electric’s official page.

Contact Information

For media inquiries, please contact the strategic communications department of UPDATER.