China News Service, Taipei, March 21: Taiwan plans to significantly increase electricity prices or exacerbate inflation
China News Service reporter Yang Chengchen
In view of the fact that the average electricity price increase in April may reach 12%, many mainstream media in Taiwan published articles on the 21st stating that this round of electricity price increase plan will have an impact on commodity prices, and adjusting the current power generation structure has become an urgent issue.
Rising electricity prices may exacerbate inflation
Taiwan’s electricity price adjustment frequency is reviewed twice a year (in April and October), and the electricity price adjustment range is set at a range of plus or minus 3%. After the two elections in Taiwan this year, there was news that electricity prices were about to rise. Taiwan Electric Power Company ("Taipower") recently confirmed the relevant news and revealed that the average increase in new electricity prices in April was about 10%, and about 15 million users will Affected.
Recently, Taiwan's economic affairs department and Taipower also applied to Taiwan's "Executive Yuan" for a subsidy of 150 billion yuan (NT$, the same below), saying it would be used to stabilize the increase in electricity prices. However, there was news on the 20th that the motion had been cut by one-third, with the subsidy scale being 100 billion yuan. Taiwan's "Business Times" estimates that the average increase in electricity prices in April will rise from 10% to 12%.
As of now, Taipower, as a public enterprise, has accumulated losses of more than 300 billion yuan. Taiwan's "Economic Daily" editorial on the 21st pointed out that Taipower has accumulated huge losses over the years. Even if the authorities significantly increase capital and raise electricity prices several times for large electricity consumers, they still cannot make up for the deficit. A new round of electricity price increases in April will apply to more electricity users, raising concerns about rising inflation.
China Times News Network reported that due to the increase in electricity prices in April, Taiwan Railways confirmed that rail transportation fares will be increased, and Taipei MRT (referring to the urban rail transit system serving Taipei City and New Taipei City) will also evaluate fare adjustments. The Taiwan Community Hospital Association pointed out on the 21st that electricity prices have increased by 32% in the past two years. If they rise sharply again, community hospitals may be on the verge of "turning off the lights."
Both the industry and the public are dissatisfied
An article in Taiwan's "Economic Daily" believes that if the Taiwan authorities follow the so-called "non-nuclear homeland" plan, the proportion of green energy power generation will increase significantly in 2025. Once the supply of renewable energy is less than expected, inflationary pressure will continue to expand. The authorities should delay the implementation of the “non-nuclear homeland” policy. After assessing that there is no risk, relevant regulations should be revised as soon as possible to allow the Taipower Second Nuclear Power Plant, which ceased operation and was officially decommissioned last year, to be extended in service and provide power, and plans are made to extend the service of the Third Nuclear Power Plant that is still in operation.
Zeng Zhichao, deputy secretary-general of Taiwan's "China Economic and Financial Association", wrote to the United News Network and stated that during the two elections in Taiwan, the Democratic Progressive Party claimed that not only did Taiwan have no shortage of electricity, but the power supply was becoming more and more stable; The plan to increase electricity prices has once again "bounced" its promise that "electricity prices will not rise significantly."
According to the plan announced by Taiwan's "Executive Yuan" on the 20th, the minimum threshold for this increase is 700 kilowatt-hours of electricity per month, and the electricity price increase for this type of users is 5%; the electricity consumption reaches over 500 million kilowatt-hours per month. Accounts will be increased by 15%. A Taiwanese environmental group held a press conference on the 20th, criticizing Taipower's current plan as "unable to implement social fairness and justice." It called for industrial electricity prices to be increased all at once, and people's tax dollars should no longer be used to subsidize industrial electricity; it also suggested that monthly electricity shortages should be levied. Users with 500 kilowatt-hours of electricity "will not see an increase in electricity prices."
According to reports, Taiwan's "Ministry of Economic Affairs" Electricity Price Review Committee will decide on the April electricity price adjustment plan on the 22nd. (over)