Minister of Economic Affairs Shih Yen-shiang (施顏祥) would not commit to a timetable for possible increases in the domestic prices of electricity and gasoline at a legislative hearing yesterday, saying there were many factors that still needed to be considered.
“Everything is still being studied and discussed,” he told the Economics Committee. “There is no timetable at present.”
State-run utility Taiwan Power Co (Taipower, 台電) has run deficits in recent years as input costs have risen, but household electricity prices have remained the second-lowest in the world and industrial power prices the fourth-lowest, according to the company, which has appealed for price increases.
Shih said that at the end of last year, Taipower had accumulated losses of NT$110 billion (US$3.73 billion), which are expected to exceed half of the company’s paid-in capital by May or June if electricity prices are maintained at current levels.
However, adjusting electricity prices to a “reasonable level” would not be easy, Shih said, as the government has to consider factors such as energy conservation and carbon reduction, the interests of low-income households and national competitiveness.
Taipower president Lee Han-shen (李漢申) said the company “has yet to come up with a timetable for adjusting electricity prices,” as it has to consider a number of issues, including economic, social and commercial factors.
Lee said Taipower has projected a deficit of NT$75.5 billion this year, but with rising fuel costs, it could end up surpassing NT$100 billion.
“It is not a problem that can be fixed by improving operational efficiency or downsizing,” Lee said, contending that raising prices was the only way to help the company out of its financial bind.
State-run oil refiner CPC Corp, Taiwan (CPC, 台灣中油) has also seen its finances suffer as global crude oil prices rise, while the domestic prices of gasoline have been partially kept in check, with CPC absorbing some of the costs.
CPC is absorbing NT$5.4 and NT$5.5 in costs for every liter of gasoline and diesel sold, Shih said.
In other issues, Shih agreed that the minimum wage for foreign workers should be considered separately from the national minimum wage.
It is not only an economic issue, but also involves complying with international standards, Shih said, in response to Chinese Nationalist Party (KMT) Legislator Ting Shou-chung’s (丁守中) comment that many countries have a different minimum wage for foreign workers, yet do not violate human rights regulations.
Ting said the private sector is calling for a lower minimum wage for foreign laborers to protect local workers.
Shih said while he agreed with the idea, the Labor Standards Act (勞動基準法) mandates the same minimum wage for local and foreign workers.
Council of Labor Affairs Minister Jennifer Wang (王如玄) said on Sunday that a minimum wage hike would be discussed at the council’s Basic Wage Screening Committee meeting in July.
The council is aiming to increase the minimum hourly wage from NT$103 to NT$115, but it does not have a goal yet for the minimum monthly wage hike, she said.
The current minimum monthly wage is NT$18,780.
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