Electricity prices in Taiwan could see a significant increase as the state-run Taiwan Power Company (Taipower) prepares to propose rate adjustments aimed at reducing its mounting financial losses. The proposal, which is expected to be reviewed by the government’s Electricity Price Review Committee this week, includes a potential 10% increase for households and small businesses, and a 5% hike for industrial users.
The move comes as Taipower faces accumulated losses amounting to NT$422.9 billion (approximately US$14.97 billion). The financial strain has been compounded by the Legislative Yuan’s recent decision to eliminate two NT$100 billion subsidy projects and reduce other government support, intensifying the urgency for a pricing overhaul.
Economics Minister Kuo Jyh-huei confirmed that details of the proposed rate increases were presented during a meeting on Friday. If implemented, the changes would impact approximately 13.4 million households, 910,000 small businesses, and 330,000 industrial users. The average electricity rate increase is projected at 6%, with the goal of preventing further widening of Taipower’s operating deficit.
Minister Kuo emphasized that electricity rates have remained unchanged for around nine million households for years, even though power has been sold below production cost. According to Taipower, the new pricing strategy could generate NT$15 billion in additional revenue. A further NT$10 billion could be collected through the consolidation of preferential rate tiers, which currently allow for lower prices under certain consumption brackets.
While previous rate hikes have primarily targeted industrial consumers, this proposal would see households and small businesses absorbing the majority of the burden. Currently, Taiwan’s industrial electricity rate stands at NT$4.27 per unit, which remains lower than South Korea’s NT$4.98 per unit. However, industrial rates have already been raised four times over the past three years, leading officials to focus more on household and commercial usage this time.
The Electricity Price Review Committee will evaluate the proposal in the coming days, with a decision expected soon. If approved, the rate changes could take effect as early as the next billing cycle.
