In a bid to set fair domestic electricity rates, legislators yesterday reached an agreement on a new electricity pricing mechanism, which will cap annual electricity rate increases at 6 percent.
The new pricing scheme will take effect in April at the earliest, with legislators saying that as international crude oil prices are likely to continue to fall, it is expected that electricity rates will fall after consumers receive their June electricity bills, Minister of Economic Affairs John Deng (鄧振中) told a media briefing.
Based on the new pricing scheme, state-run Taiwan Power Co (Taipower, 台電) is required to adjust its electricity rates every six months in accordance with the fluctuation of fuel costs, including the prices of crude oil, coal and natural gas, Deng said.
Price increases will be limited to 3 percent every six months, or 6 percent on an annual basis, he said.
“On the other hand, Taipower has to completely reflect the falling costs of power generation in the electricity prices if there are any,” Deng said.
Lawmakers also agreed to a “reasonable” profit margin of between 3 percent and 5 percent for Taipower.
As of last year, Taipower had accumulated NT$193.5 billion (US$613.31 million) in losses, Deng said. To help write off the losses, lawmakers agreed to allow Taipower to enjoy a profit margin of 5 percent at most until the company clears the debt, Deng said.
“After Taipower pays off its accumulated losses, the ‘reasonable’ profit margin will be set at 3 percent,” Deng added.
That reasonable profit margin range would guarantee the company a profit of between NT$10.5 billion and NT$17.4 billion a year, Taipower chairman Hwang Jung-chiou (黃重球) said, citing a company estimate.
Hwang said although the new pricing mechanism begins in April, Taipower would still increase summer electricity rates between June and September.
“The summer electricity price increase has been in force for more than two decades to conserve energy and we will continue with the policy to encourage people to conserve energy,” Hwang said.
Hwang said that the cost of developing renewable energy sources had also been factored into the pricing mechanism.
“Households which use 400 kilowatt-hours per month will pay NT$4 more per month to pay for renewable energy development,” Hwang said. “That said, we are still confident that electricity rates in April will be lower than the current rates due to the decline in global oil prices.”
During the meeting, lawmakers agreed to review the electricity pricing mechanism again in two years.
Separately, lawmakers requested that the Executive Yuan send an amendment to the Electricity Act (電業法) to the legislature for deliberation within six months.
“We will give the proposal to the Cabinet at the beginning of February at the latest,” Deng said.
KEY INDUSTRY: The vice premier discussed a plan to create a non-red drone supply chain by next year, which has been allocated a budget of more than NT$7.2 billion The government has budgeted NT$44.2 billion (US$1.38 billion) to cultivate Taiwan’s uncrewed aerial vehicle (UAV) industry over the next five years, which would make the nation a major player in the industry’s democratic supply chain in the Asia-Pacific region, Premier Cho Jung-tai (卓榮泰) said yesterday. Cho made the remarks during a visit to the facilities of Cub Elecparts Inc (為升電裝). Democratic Progressive Party (DPP) Legislator Chen Su-yueh (陳素月) and Chinese Nationalist Party (KMT) Legislator Hsieh Yi-fong (謝依鳳) also participated in the trip. Cub Elecparts has transitioned from the automotive industry to the defense industry, which is the top priority among the nation’s
SOUTH KOREA DISPUTE: If Seoul continues to ignore its request, Taiwan would change South Korea’s designation on its arrival cards, the foreign ministry said If South Korea does not reply appropriately to a request to correct Taiwan’s name on its e-Arrival card system before March 31, the government would take corresponding measures to change how South Korea is labeled on the online Taiwan Arrival Card system, the Ministry of Foreign Affairs said yesterday. South Korea’s e-Arrival card system lists Taiwan as “China (Taiwan)” in the “point of departure” and “next destination” fields. Taipei has asked Seoul to change the wording. Since March 1, South Koreans who hold government-issued Alien Resident Certificates (ARC) have been identified as from “South Korea” rather than the “Republic of Korea,” the
SUFFICIENT: The president said Taiwan has enough oil for next month, with reserves covering more than 100 days and natural gas enough for 12 to 14 days A restart plan for the Guosheng Nuclear Power Plant in New Taipei City’s Wanli District (萬里) and the Ma-anshan Nuclear Power Plant in Pingtung County’s Hengchun Township (恆春) would be submitted to the Nuclear Safety Commission by the end of the month, President William Lai (賴清德) said yesterday, reversing the government’s policy to abolish nuclear energy. On May 17 last year, Taiwan shut down its last nuclear reactor and became the first non-nuclear nation in East Asia, fulfilling the Democratic Progressive Party (DPP) government’s pledge of a “nuclear-free homeland.” Even without nuclear power, Taiwan can maintain a stable electricity supply until 2032,
DEROGATORY: WTO host Cameroon’s designation of Taiwan as a ‘province of China’ seriously undermines the nation’s status and rights as a WTO member, MOFA said The Ministry of Foreign Affairs (MOFA) yesterday condemned Cameroon for listing Taiwan as “Taiwan, Province of China” in visa documents for an upcoming WTO ministerial conference, a move that led to Taiwan’s withdrawal from the event. The designation “seriously undermined” Taiwan’s status and rights as a WTO member, the ministry said in a statement. It is the first time since 2001 that Taiwan has declined to attend a WTO Ministerial Conference. The conference is scheduled to take place from Thursday to Sunday next week in Yaounde, the capital of Cameroon. Taiwan had planned to send a delegation led by Minister Without Portfolio
RSS