Taiwan Power Co (Taipower, 台電) yesterday said it would refund electricity fees of at least NT$166 (US$5.31) per household for a full year of use amid the recent decline in global crude oil prices.
“We hope to start returning money to households across Taiwan next month and people would receive a full refund based on their electricity use for this year,” Taipower chairman Hwang Jung-chiou (黃重球) told a news conference at the Legislative Yuan in Taipei.
Based on Taipower’s estimate, Huang said households that use 330 kilowatt-hours per month would receive a refund of at least NT$166 in their first electricity bill next year.
Huang added that the exact date of the start of the refunds would depend on the legislature’s progress in reviewing a new electricity rate formula, saying that it is better to share Taipower’s profits with the public in accordance with the formula.
However, the state-run utility has to consult with the Ministry of Economic Affairs on whether industrial electricity users should also receive refunds, Huang said.
The utility is expected to see a net profit of more than NT$20 billion by the end of this year and it has decided to share with clients the NT$9 billion it has saved in fuel costs as a result of the decline in international oil prices, Huang said.
Both households and small shops are to receive greater refunds than industrial users, he added.
Huang’s remarks mark the first time that Taipower said how it would spend its fuel-cost savings.
Since Taipower carries heavy accumulated losses of NT$208.4 billion, the company and the ministry have been conservative about sharing its profits with the public.
New Minister of Economic Affairs John Deng (鄧振中) on Monday said that electricity rate cuts or refunds are options for profit-sharing with Taipower’s clients.
Deng yesterday said that the ministry is waiting for the legislature to pass a proposed electricity pricing formula, adding that once legislators provide their consent, the ministry would begin carrying out measures to return Taipower’s profits to the public as soon as possible.
“The electricity rates will definitely be adjusted retroactively to reflect the decline in global crude oil prices,” Deng said, adding that the retroactive date would be from the beginning of this year.
Chinese Nationalist Party (KMT) Legislator Yang Chiung-ying (楊瓊瓔), who doubles as the legislature’s Economics Committee convener, said she would add the pricing formula to next week’s committee agenda.
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