Taiwan outpaces other Asian countries in electricity consumption per kilowatt-hour (kWh) per capita, while its electricity prices for households and industrial consumers are much lower than its rivals’, Minister of Economic Affairs Chang Chia-juch (張家祝) said yesterday.
Taiwan Power Co (Taipower, 台電) data show the nation’s annual electricity consumption per capita reached 10,237kWh in 2010, compared with 9,851kWh in second-ranked South Korea and 8,399kWh in third-ranked Japan.
“While we lead in power consumption per capita in Asia, our household electricity rate is the second-lowest in Asia and around the world,” Chang said in an interview with UFO radio station.
Electricity prices for industrial consumers are also the second-lowest in Asia and fourth-lowest in the world, he said.
Describing this disparity as a “rather strange phenomenon,” Chang said the unrealistically low rates do not reflect Taipower’s operating costs.
“Worse still, it has hampered the realization of our policy goal of promoting energy conservation and reducing carbon emissions,” he said.
The electricity rate hike scheduled for October was devised in line with the principle of “user pays,” Chang said, adding that the planned hikes will not affect most households and small businesses.
The Ministry of Economic Affairs (MOEA) said on Tuesday that households using 500kWh or less per month will be exempt from the price hike, as will small businesses consuming 1,500kWh or less.
Chang said Taipower had been operating in the black until 2003, when its fuel costs soared significantly. Oil has increased 29 percent over the past decade, while the price of coal has jumped 168 percent and that of natural gas has doubled, he said.
“In the past, fuel accounted for 37 percent of Taipower’s overall operating costs, but the ratio has surged to 63 percent,” he said.
“Our power rates have increased by an average of just 32 percent, which is the main reason for Taipower’s financial woes,” Chang said.
State-owned Taipower’s accumulated losses total more than NT$220 billion (US$7.35 billion).
“Since last year, Taipower has taken steps to streamline its management and improve operational efficiency with the aim of cutting its operating costs,” Chang said.
The steps include revising its purchasing contracts with private power producers and rejuvenating its unused properties, he said.
“Taipower expects to save NT$10 billion in operating costs over the next five years, but this can hardly offset increases in its fuel costs,” he said.
Nuclear power generation is a forced choice, the minister said.
“At present and even over the next decade, there is no other option that can satisfy our energy needs in a more stable, economical and cleaner way than nuclear power generation,” he said.
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
Protectionism: US trade chief Katherine Tai said the hikes would help to counter unfair trade practices from China, while boosting domestic clean energy investments US Trade Representative Katherine Tai (戴琪) defended stiff tariff hikes against countries such as China, saying that paired with investment, they were a “legitimate and constructive” tool for reinvigorating domestic industries. Tai’s comments come a week after sharp tariff increases on Chinese electric vehicles (EVs), EV batteries and solar cells took effect — with levies down the line on other products also recently finalized. The latest moves targeting US$18 billion in Chinese goods come weeks before next month’s US presidential election, with Democrats and Republicans pushing a hard line on China as competition between Washington and Beijing intensifies. In an interview on Thursday
RSS