After the Fukushima nuclear accident, the Japanese government passed a new round of power reform programs and proposed the full liberalization of entry to electricity retail business. At present, China is in the key stage of power system reform. Researching and analyzing the practical experience of Japan electricity retail reform will be of significance for deepening of electric power reform in China. According to the electricity market reform plan, electricity retail market of Japan was fully liberalized in April 2016. In order to ensure the smooth implementation of the reform, the Japanese government adopted measures to simplify the procedures and requirements for the establishment of electricity retail companies, establish an independent electricity market supervision committee, strengthen supervision of the electricity retail market, and establish last resort mechanism. After the reform in Japan, more than 400 power retail companies have been established which promote the cross-regional electricity trading. The enlightenment to electric power reform in China is as follows: carrying out the electricity retail choice with legislation, maintainig the unified dispatch management system of power grid in China, and accelerating the construction of electricity wholesale markets.