Taiwan’s Premier Cho Jung-tai (卓榮泰) announced on Tuesday that residential electricity rates will remain unchanged while industrial rates will increase by an average of 12.5%, with some sectors seeing an increase of 14%.
This change is set to take effect starting from October 16. The decision, made by the electricity price review committee on Monday, aims to balance consumer protection with the need to address Taipower's severe financial losses.
During his address at the Legislature, Premier Cho said the price adjustments were made in consideration of several factors, including cost reflective pricing, public welfare, price stability, and energy conservation. He also noted that despite the increase, Taiwan’s industrial electricity rates remain lower than those of neighboring Asian countries while approaching Taipower's operational costs.
In response to industry concerns, Cho has instructed the Economic Ministry and Taipower to conduct a more detailed review of the price adjustments within specific sectors, while respecting the committee's decision. He stressed the importance of maintaining communication with various industries during this period to address their concerns.
To mitigate the impact on businesses, the government plans to form “energy-saving teams” to help industries reduce their electricity consumption. Cho says that widespread energy conservation in an era of high electricity necessitates price adjustments. As for nuclear power, Cho says that it has lower upfront costs, but the hidden expenses of waste management can be a financial burden in the long term.