Taiwan Power Co (Taipower, 台電) is to implement its annual summer electricity rates for residential users from June 1 through Sept. 30, with the average monthly bill expected to rise to NT$1,084.
Summer rates for approximately 15 million residential and small commercial users are to begin on June 1, while the seasonal pricing scheme for about 26,000 high-voltage and extra-high-voltage users is to begin earlier, running from Saturday to Oct. 15, a notice on the state utility’s Web site said.
Taipower said the summer pricing mechanism has been in place since 1989, with domestic customers charged higher rates from June through September due to increased electricity demand, driven mainly by air-conditioning and other cooling systems.
Photo: CNA
Average monthly household usage throughout the year is about 345 kilowatt-hours (kWh), the company said, citing data for last year.
The data showed that during non-summer months, household electricity consumption averages 308kWh per month, which costs NT$638, the company said.
In the summer months, the average monthly domestic usage rises to 418kWh, pushing the bill up nearly 70 percent to NT$1,084, Taipower said.
The higher costs to residential consumers during the summer are due largely to increased power consumption rather than the rate hike, Taipower said.
Electricity usage accounts for 73 percent of the increase, while the higher seasonal rates make up 27 percent, the company said.
Most households in Taiwan use the standard progressive pricing system, in which electricity rates rise depending on consumption levels rather than the time of day electricity is used.
Under the six-tier pricing system for residential users, the first 120kWh consumed during the summer months is charged at NT$1.78 per kWh, the next 210kWh at NT$2.55 per kWh and the remaining 88kWh at NT$3.80 per kWh.
Taipower said time-of-use plans, which charge different rates for peak and off-peak hours, are also available for residential users.
However, the standard progressive pricing system remains more cost-effective for most households with relatively low electricity consumption concentrated during peak daytime hours, the company added.
Meanwhile, industrial consumers are subject to summer rate hikes from Saturday to Oct. 15 to encourage electricity conservation, Taipower said.
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