Minister of Economic Affairs John Deng (鄧振中) yesterday said that state-run Taiwan Power Co (Taipower, 台電) would only refund electricity charges after the legislature approves a new power rate formula.
“It is important that the size of the refund be calculated based on the new pricing formula,” Deng told reporters on the sidelines of a meeting of the legislature’s Economics Committee in Taipei.
Deng’s remarks came after the committee yesterday passed a non-binding resolution demanding that Taipower shares its profits with the public next month, even as the legislature reviews its new pricing formula.
Taipower on Wednesday said it could refund at least NT$166 per household next year as the company expects to generate a net profit of more than NT$20 billion (US$641 million) this year, mainly due to falling global crude oil prices.
Democratic Progressive Party (DPP) Legislator Su Cheng-ching (蘇震清) said that the profit-sharing scheme and legislative review of the power rate formula are two different issues that can be carried out separately.
Chinese Nationalist Party (KMT) Legislator Huang Chao-shun (黃昭順) agreed, saying that as the Ministry of Economic Affairs (MOEA) knows Taipower has saved more than NT$9 billion because of the recent decline in global crude oil prices, it should return the money to the public as soon as possible.
“Given that this legislative session is about to end in three weeks, the ministry should not force lawmakers to review the complicated formula in such a short period of time,” Huang said.
DPP Legislator Huang Wei-cher (黃偉哲) said that since the state-run utility had raised electricity rates over the past few years using the current pricing formula, it did not make sense for the ministry to insist that a new formula be passed before the company is able to make refunds.
Taipower chairman Hwang Jung-chiou (黃重球) said the company could not use the current formula to calculate the size of the refund because it would not be able to reflect the savings made from the oil price decline.
Deng said that only the new proposed electricity rate formula could reflect the fluctuations in power generation costs and improve Taipower’s operation.
He promised that the ministry would cooperate with lawmakers to have the proposal passed before next month.
The committee is scheduled to review the formula on Thursday next week.
Deng also confirmed at the meeting that cross-strait talks on technical issues relating to a proposed trade in goods agreement would take place in Beijing on Monday.
The negotiations will center on tariff barriers on the flat-panel, machine tool, auto and petrochemical industries, Deng said, adding that those sectors carry the biggest issues hindering progress in the trade talks.
On the other hand, Taiwan has been protective of several local sectors that Beijing wishes to see lower tariffs on, he said.
“We hope to ink the trade pact with Beijing as soon as possible, but it is hard to tell when that will happen,” Deng said.
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