Taipower to Propose Plan on Raising Electricity Price|台電將提電價調整方案 經部傾向凍漲

State-owned Taiwan Power Company estimates that it will propose a new plan to the Ministry of Economic Affairs on adjusting electricity prices. Even though details have yet to be finalized, many estimate that, based on the current international oil prices, the electricity price will see an increase of between 5 percent and 6 percent.

Places such as this shaved ice dessert shop must keep their fridge running 24 hours a day to ensure all of the ingredients are fresh. The owner feels that the possible hike in electricity price would bring much added cost to running her business.

(All my equipment) must be kept running 24 hours a day. I never unplug them because all the materials and the drinks must be kept cool or frozen. If the electricity price raise again, I'll need to increase the cost of each item by NT$5.

Currently standing at NT$2.6253 per kilowatt hour, electricity prices have been kept unchanged since this April. As a result, Taipower has been operating at a loss of NT$29.7 billion this year. Despite an earlier statement from the Ministry of Economic Affairs on having no pressure to raise electricity prices, many speculate that the price will see an increase of between 5 percent and 6 percent based on the current international oil prices. Meanwhile, there have also been rumors that the ministry plans to hold the electricity prices steady ahead of the 2020 Presidential Elections.

(The current electricity price) does not take into consideration the price fluctuation in the summer, as well as the international oil prices in the next few months. Our calculation of the electricity price includes a guarantee of 5 percent revenue, and we also have a stabilization fund. Therefore, Taipower won't likely be operating at a loss.

The electricity price will eventually be decided after a discussion (of the Electricity Price Committee). The decision could also factor in the mathematical formula. Preparations have been made to keep the potential growth steady.

Economics Minister Shen Jong-chin stresses that he anticipates Taipower could see an increase in their revenue after the summer electricity rates kick in. Adding to that stabilization fund, Taipower will unlikely see an operating loss. Meanwhile, Taipower has said that electricity price is decided by the Electricity Price Committee and that they will follow suit once the decision is made.