State-run Taiwan Power Co (Taipower, 台電) yesterday said it is considering a plan to encourage heavy electricity users to consume less power, as the nation faces a potential power shortage next month.
The company’s plan, likely to take effect next month, came after the Bureau of Energy on Wednesday said the nation’s reserve margin could drop to a 10-year low to 3.3 percent between May 20 and May 28, due to ongoing maintenance work at nuclear power plants and privately owned power stations, as well as a water shortage.
Under the plan, industrial and commercial users would receive subsidies from the utility if they consume less electricity.
The utility plans to spend at most NT$32 million (US$1.02 million) per day on the subsidies, Taipower president Chu Wen-chen (朱文成) told a press conference in Taipei.
“We hope to spend a relatively small amount of money to encourage heavy electricity users to conserve more energy, lowering the chances of a power shortage next month,” Chu said.
The plan, which Taipower is looking to implement every summer, is not expected to increase the firm’s power generation costs, Chu said, because the move would also reduce power generation because of declining usage by heavy users.
“If the plan is successful, it could possibly increase the energy operating reserve by 2.5 percentage points,” Chu said.
Heavy industrial users are large companies such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), while heavy commercial users are mainly large retail stores, the company said.
If a large retail store signs a contract with Taipower and promises to use less electricity for between two to four hours per day, Taipower would offer a subsidy of up to NT$10 per kilowatt hour, Taipower said.
Taipower said it would propose the plan to the Ministry of Economic Affairs next week.
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