Premier Su Tseng-chang (
Taipower is studying possible adjustments in its fee structure, Chen said, adding that it will take a while for the company to complete its review before sending a plan to the Ministry of Economic Affairs for approval.
Chen made the remark yesterday on the sidelines of his inauguration ceremony, which was presided over by Minister of Economic Affairs Morgan Hwang (黃營杉).
"Bringing the electricity rates to reasonable levels will not only stem our losses, but also reduce [waste of electricity]," Chen said. He declined to elaborate on the price hike measures.
The nation's electricity rates have been fixed for the past 23 years. But with fuel costs rising over the years, the state-run monopoly needs to make adjustments or post record losses of NT$25 billion (US$783 million) by the end of the year.
Reportedly, the electricity rate for household use at NT$2.4 per kilowatt-hour may be hiked as much as 5 percent, but the rate for consumption under 330 kilowatt-hours per month will remain unchanged. The new rates will take effect in June -- when the peak season starts -- at the earliest.
According to Taipower statistics, about half of the nation's households' electricity consumption is below 330 kilowatt-hours per month.
The rates for industrial and commercial use, currently at an average of NT$1.7 per kilowatt-hour, will be hiked by more than 20 percent during peak hours, and 5 percent during off-peak hours, making the average hikes 14.7 percent per month, according to Chinese-language media reports.
Industries and businesses consume 65 percent of the nation's total electricity.
During the ceremony, Chen also vowed to continue the controversial construction of the nation's fourth nuclear power plant, saying he hopes to complete the project as soon as possible and with the lowest budget possible to ensure electricity supplies.
Although the construction licence for the fourth nuclear power plant was issued in 1999, construction has been interrupted several times due to opposition from the Democratic Progressive Party, which advocates a nuclear-free Taiwan.
Hwang also said that he plans to invite experts from the International Atomic Energy Agency or the International Nuclear Regulatory Association to review the project, which would help boost public confidence in the plant's safety.
Hwang suggested that Taipower take action to further the development of solar power in order to reduce the nation's dependency on imported oil.
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