Taiwan Prioritizes Price Stability in Electricity Rate Review
Taiwan's Economics Minister Kung Ming-hsin emphasized that maintaining price stability and supporting people's daily needs will remain top priorities as the government reviews electricity rates for October. The review committee, which meets in September, will have the final say on whether rates are adjusted.
The current electricity rates are below the cost of generating power, with rates needing to rise by about 7.3% to cover Taiwan Power Co.'s projected losses this year. However, inflation concerns may make an increase less likely, according to Economic Daily News.
Taiwan Power Co., the state-run utility, posted a pretax loss of NT$25.7 billion in the first half of the year, bringing its cumulative losses to NT$376.4 billion due to higher fuel costs. The company's monthly fuel costs have increased by about NT$15 billion since the latest escalation of conflict in the Middle East.
Higher natural gas prices have also raised Taiwan Power's costs, with CPC Corp., Taiwan increasing natural gas prices for power generators by 9.91% in August. Premier Cho Jung-tai stated that the government would prioritize stable living costs as Taiwan Power absorbs higher liquefied natural gas costs.