Electricity Price Increases a Possibility in October|台電喊十月漲電費 工商界反映負擔加重

The odds are high that the electricity price will be increased after Taiwan Power Company lost NT$ 24 billion during the first half of the year. The decision will be made after the price review committee will meet in mid-September.


Taiwan's electricity usage during the summer continues to set new record highs. Taiwan Power Company says there are no electricity shortages, but the international fuel price is fluctuating greatly, leading to increased electricity generation costs. Taipower Chairperson Yang Wei-fuu says the company recorded a loss during the first half of the year, and the electricity price should reflect costs.

Taiwan Power Company's loss during the first half of the year reached NT$ 24 billion. The main reason lies with fuel expenditures, which account for 50 to 60 percent of electricity price costs. Natural gas is supplied by CPC Corporation, and we follow CPC Corporation's natural gas list price. As for coal, we have long-term and short-term contracts, so they are affected by global fuel prices.

In April, the electricity price was increased. The government's electricity price review committee is scheduled to convene in mid-September, and it will be known in October whether the electricity price will be adjusted again this year. The Ministry of Economic Affairs has been vague about its position, as there are local elections at the end of the year. Meanwhile, industry groups have criticized the government, saying its energy policies are not pragmatic enough, causing fluctuating electricity prices and an unstable electricity supply.

It appears the electricity price will be increased again (in October). In other words, it will be raised twice in just one year. This will of course increase the burden on companies.

State-run enterprises should support companies (by not raising electricity prices) when the economy is slumping. This is reasonable.

The Bureau of Energy says if the price is gradually increased, Taipower's NT$ 79 billion excess earnings will be able to make up any deficiencies. However, if international fuel, coal and gas prices continue to rise and the electricity price does not reflect these costs, it will have to be increased substantially, which will translate to a heavier burden on the public.