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Government to keep water and electricity prices stable

The government will not raise water and electricity rates, despite skyrocketing oil prices, a Cabinet official said on Friday.

Executive Yuan Secretary-General Chen Chin-jun (陳景峻) made the statement amid widespread speculation that domestic gasoline prices would rise substantially next month, which would also drive up water and electricity prices.

Chen said CPC Corp, Taiwan, the state-run oil company, has not raised the price of oil in its sales to Taiwan Power Co in an effort not to increase the company's costs.

In real terms this means the government is subsidizing Taipower with NT$35 billion (US$1.1 billion) as part of its efforts to stabilize electricity prices and maintain consumer price stability, Chen said.

Chen said the Cabinet had also approved a draft electricity bill at a meeting earlier this week, which would encourage the use of various means to develop electricity, including private investment.

He also called on the public to conserve water, saying that water prices would not be adjusted upward, even though water treatment costs had already surpassed the water selling price.

Premier Chang Chun-hsiung (張俊雄) said he had instructed ministries to monitor the rising prices of international raw materials and oil and to analyze their impact on Taiwan.

He said he had asked a special task force under the Ministry of Economic Affairs to keep an eye on the supply and demand of raw materials.

The task force will implement measures such as halving import duties and limiting export items, to ensure price stability, he said.

The Fair Trade Commission is also paying close attention to the market to prevent people from illegally profiting by inflating commodity prices, Chang said.
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