The seasonal electricity rate hike takes effect today and is expected to increase power bills by NT$446 per month (US$14.21) for most Taiwanese households, according to Taiwan Power Co (Taipower, 台電)
The summer electricity rates are implemented through the end of September.
The state-run energy company said the estimates are based on last year’s figures and do not include a possible surge in power use resulting from El Nino-related conditions.
Photo: Taipei Times file photo
Taipower based the calculations on last year’s electricity bills and energy use records, it said, adding that power bills increase to match the rise in demand in the summer every year.
The US, the UK and Japan enact similar measures each year to incentivize power saving and reduce the load on the grid, Taipower said. The average cost of electricity for the year should be unchanged, it added.
According to Taipower, last year, the average Taiwanese household consumed 308 kilowatt-hours (kWh) per month during non-summer seasons and 418kWh per month during the summer, increasing bills by 40 percent.
The rate adjustments account for 27 percent of the price difference, with increased electricity use accounting for the remaining 73 percent, it said.
The summertime price hikes apply progressively to energy use, with 30 percent of Taiwanese households that consume less than 120kWh or less per month remaining largely unaffected, it said.
The 40 percent of Taiwanese households that consume 121kWh to 330kWh per month should see their bills increase by no more than NT$2 per month, while the 2.4 percent of households that use more than 1,000kWh per month would see significant price increases, Taipower said.
Taipower said it incurred a net loss of NT$9 billion from January to April this year, with surging global oil and gas prices largely to blame, adding that the corporation is NT$361.9 billion in the red.
Profits from energy use in the summer typically provide a measure of short-term relief for the state-run enterprise’s finances, it said.
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