Taiwan Power Co (Taipower, 台電) is to raise electricity rates by an average of 0.71 percent, affecting 14 million households and small-scale businesses, while holding rates steady for industrial users, the Ministry of Economic Affairs said yesterday.
The average electricity rate would rise from about NT$3.76 to NT$3.78 per kilowatt-hour (kWh) starting next month, Deputy Minister of Economic Affairs Lai Chien-hsin (賴建信) told a news conference after the electricity price review committee wrapped up a meeting.
Industrial electricity rates would remain unchanged at NT$4.27 per kWh, following multiple price increases over the past few years.
Photo: CNA
Residential electricity, which includes households and small stores, would see an average rate increase of 3.12 percent, Lai said.
The adjustment aims to reflect Taipower’s power generation costs, Lai said.
Taipower currently charges household users NT$2.77 per kWh, significantly lower than its power generation costs of NT$3.8 on average since January.
The latest electricity price hikes would add NT$6.4 billion (US$211.8 million) in revenue, Lai said.
Taipower would raise electricity rates for households based on three tiers: Households that consume less than 700kWh a month would see a price rise of NT$0.1 per kWh, while those using 701kWh to 1,000kWh would see a NT$0.2 increase, and those above 1,001kWh would face a NT$0.4 hike, he said.
The price adjustment would result in a NT$70 increase in the monthly electricity bill of a four-member family using 700kWh a month, he said.
For small stores using less than 700kWh, the power rates would go up by NT$0.1 per kWh, while those consuming more than 700kWh would see no change in their electricity bill, Lai said.
The latest electricity rate increase still fell short of the 6.45 percent rate increase Taipower proposed during the committee meeting to turn its business around, Taipower vice president Tsai Chih-meng (蔡志孟) said.
Although fuel prices have been falling, Taipower still faces accumulated losses of NT$417.9 billion, Tsai said, adding that as a NT$100 billion subsidy program is yet to be approved by the legislature, the company’s financial condition remains tight.
The price hike matched the expectations of most business groups.
A “mild” increase for households and small businesses would be an “ideal” scenario, considering their financial burden and the impact on inflation, General Chamber of Commerce of the Republic of China chairman Paul Hsu (許舒博) said.
“A 3 percent increase for residential users is acceptable,” Hsu said.
The Chinese National Association of Industry and Commerce said the decision to freeze electricity rates for industrial users would help safeguard the competitiveness of local industries and help them endure operational difficulties.
Third Wednesday Club (三 三會)
chairman Lin Por-fong (林伯豐) said the price increases only provided short relief to Taipower, and the nation’s energy policy remains unsolved.
The government should revise its energy policy and reconsider adopting nuclear power, he said.
National Association of Small and Medium Enterprises Republic of China chairman Yu-Jia Li (李育家) said that the government has been considerately curbing electricity rate rises, fearing that any dramatic adjustments would put the public and industries in difficult situations.
Additional reporting by Lisa Wang
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