Premier Mao Chi-kuo has said that electricity prices should reflect decreasing crude oil prices. But Mao also said on Monday that if crude oil prices rise again in the future, electricity prices will also need to go up again.
The state-run Taiwan Power Company (Taipower) has been able to generate profits of some NT$20 billion (US$640 million) this year. Of that, roughly NT$9 billion is considered excess earnings from unexpected declines in global oil and coal prices. This part of the company’s earnings will be given back to the people. The premier said that the government will outline measures on returning the excess earnings by the end of the year.
Meanwhile, Premier Mao said that he has also directed the economics ministry to devise a new formula for calculating electricity prices that accurately reflects changes in the cost of its key raw materials. The legislature is set to review the new formula this week.