TOKYO (AP) — Japan’s Cabinet has approved a proposal to revamp its troubled electricity industry and foster more competition by obliging utilities to split power generation and distribution into separate businesses.

The plan is meant to encourage more innovation and modernization of the power grid as the country grapples with its energy policy following the shut-downs of almost all its nuclear power plants after the March 2011 tsunami disaster at the Fukushima Dai-Ichi plant.