Government officials said yesterday at a national conference that water prices are too low and should be raised to meet water companies' costs in maintaining water-supply facilities.
"It is necessary to raise water prices to NT$20 per cubic meter," Vice Premier Lin Hsin-i (
"The hike in water fees can help prevent water waste by consumers," Lin said.
Currently, water fees are NT$7 to NT$9 per cubic meter. The rates have been frozen at the current level for nine years. The cost of processing water for household use, however, is NT$22 per cubic meter.
But Lin yesterday declined to specify when the government will raise water prices. He simply said the government has no plans for such a move in the near future. He didn't elaborate.
Although it is unknown when water prices will be changed, it is clear that the low price of water is unsustainable and has resulted in financial difficulties for the two major water suppliers in the nation.
According to government figures, Taiwan Water Supply Corp (自來水公司) and the Taipei Water Department (台北自來水事業處) saw their sales drop 1.73 percent and 3.05 percent last year, respectively, from the previous year's sales.
Because of the two companies' lack of funds, they cannot afford to repair old or worn water pipes that cause losses of 800 million tonnes of water each year. This is equivalent to two Feitsui Reservoirs annually, according to a recent Ministry of Economic Affairs report.
To reduce the water-leakage rate, Taiwan Water Supply Corp in March reported to the government that it planned to spend NT$3.5 billion to refurbish 670km of water pipe this year. In the past, the company allocated NT$200 million each year on pipe reconstruction, said Joseph Lyu (
The financial losses of the water companies, along with worsening water shortages in recent years, have forced the government to reconsider raising water fees.
"We'll propose a concrete measure on water-fee adjustment next year," said deputy director of Water Resources Agency Chen Shen-hsien (
Aside from the general price-hike plan, in March the agency proposed raising water fees for heavy users during dry periods, usually from November to April, from NT$0.5 to NT$1.5 per cubic meter.
If the proposal is passed, the companies will increase income by 30 percent to 40 percent during the dry season, Chen said.
TECH TITAN: Pandemic-era demand for semiconductors turbocharged the nation’s GDP per capita to surpass South Korea’s, but it still remains half that of Singapore Taiwan is set to surpass South Korea this year in terms of wealth for the first time in more than two decades, marking a shift in Asia’s economic ranks made possible by the ascent of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). According to the latest forecasts released on Thursday by the central bank, Taiwan’s GDP is expected to expand 4.55 percent this year, a further upward revision from the 4.45 percent estimate made by the statistics bureau last month. The growth trajectory puts Taiwan on track to exceed South Korea’s GDP per capita — a key measure of living standards — a
Samsung Electronics Co shares jumped 4.47 percent yesterday after reports it has won approval from Nvidia Corp for the use of advanced high-bandwidth memory (HBM) chips, which marks a breakthrough for the South Korean technology leader. The stock closed at 83,500 won in Seoul, the highest since July 31 last year. Yesterday’s gain comes after local media, including the Korea Economic Daily, reported that Samsung’s 12-layer HBM3E product recently passed Nvidia’s qualification tests. That clears the components for use in the artificial intelligence (AI) accelerators essential to the training of AI models from ChatGPT to DeepSeek (深度求索), and finally allows Samsung
READY TO HELP: Should TSMC require assistance, the government would fully cooperate in helping to speed up the establishment of the Chiayi plant, an official said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said its investment plans in Taiwan are “unchanged” amid speculation that the chipmaker might have suspended construction work on its second chip packaging plant in Chiayi County and plans to move equipment arranged for the plant to the US. The Chinese-language Economic Daily News reported earlier yesterday that TSMC had halted the construction of the chip packaging plant, which was scheduled to be completed next year and begin mass production in 2028. TSMC did not directly address whether construction of the plant had halted, but said its investment plans in Taiwan remain “unchanged.” The chipmaker started
Taiwan has imposed restrictions on the export of chips to South Africa over national security concerns, taking the unusual step of using its dominance of chip markets to pressure a country that is closely allied with China. Taiwan requires preapproval for the bulk of chips sold to the African nation, the International Trade Administration said in a statement. The decision emerged after Pretoria tried to downgrade Taipei’s representative office and force its move to Johannesburg from Pretoria, the Ministry of Foreign Affairs has said. The move reflects Taiwan’s economic clout and a growing frustration with getting sidelined by Beijing in the diplomatic community. Taiwan