Minister of Economic Affairs Lin Hsin-yi (
"In light of the recent economic climate, the state-run Taiwan Power Co (台電) will not consider raising power prices for the time being so as to safeguard the competitiveness of Taiwan's industries," Lin said.
Lin, who was delivering a report on the state of the nuclear plant's budget at the legislature, guaranteed that there would be no price hikes on electricity during Chen Shui-bian's (
Lin has previously suggested that the costs involved with cancelling the plant -- estimated to be as high as NT$90 billion -- could be borne out over five years in raised electricity prices.
Lin also said that "provided the alternative power generation plan was implemented successfully, [the remaining nuclear power plants] would be phased out earlier than scheduled."
Lin did not say how much earlier the plants would be closed, saying only that the economics ministry and Taipower were currently working on a schedule.
Nuclear power plants No. 1, No. 2 and No. 3 are due to end their generating lives in 2019, 2021 and 2025, respectively.
The main pillar of the alternative power plan is to further open up the electricity generation market in northern Taiwan to the private sector, beginning with 2,500 megawatts slated to go up for bidding next month, according to the economics ministry.
Since the government cancelled construction of the fourth nuclear plant last Friday, it has attempted to convince the public that the government's alternative power plan will supply a sufficient amount of electricity for Taiwan's future needs, and Lin has been at the forefront of the charge with a TV commercial paid for by the DPP urging people to have confidence in the government's plan.
"There is enough electricity," Lin said, adding that cancellation of the plant "won't influence economic development while allowing people to set their minds at ease."
Chinese-language media reported Minister of Finance Yen Ching-chang as saying yesterday that Taiwan investors had overeacted to the axing of the nuclear plant after Taiwan stock index futures in Singapore recovered some heavy losses earlier in the day.
The market's 146-point fall to 5,659 yesterday was due to "non-economic factors and had nothing to do with the fundamentals of listed companies," Yen said.
He reminded investors who may have been skittish about the impact of the power plant's cancellation on on Taiwan's economy and investment climate that the NT$500 billion national stabilization fund stands ready to support the market "at any time."
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