About 1,000 Taiwan Power Co (Taipower, 台電) employees yesterday marched to the Executive Yuan in Taipei to protest a planned amendment to the Electricity Act (電業法) aimed at power market liberalization, which they said would split the state-owned company and allow private businesses to monopolize power rates.
The protest, which was launched solely by Taipower employees without the company’s union, started on Sept. 5 at the Ma-anshan Nuclear Power Plant in Pingtung County and concluded with yesterday’s rally, with some protesters traveling from Pingtung to Taipei on foot.
Although the Executive Yuan has yet to finalize a draft of the amendment to be submitted to the Legislative Yuan for review, protesters said the government was planning to force through the amendment in a short time.
Photo: Huang Yao-cheng, Taipei Times
The draft amendment aims to open the power market and separate the energy industry into three categories: power generation, power distribution and energy brokerage, with the power distribution industry to remain state-owned.
Protesters said the proposed liberalization would only benefit large businesses and cause electricity prices to rise, while Taipower might be split into different companies to make way for competitors.
Tseng Yueh-hui (曾玥惠), spokeswoman for the demonstrators, said Taipower has been asked to shoulder government policy costs, such as an electricity subsidy for schools, a “renewable energy” subsidy and reserve capacity maintenance, but those costs are not factored into Taipower’s pricing mechanism.
Power rates will increase if the amendment is approved and the power industry is deregulated, as those costs will be transferred to consumers, Tseng said, adding that it is estimated the price of electricity will go up at least 142 percent.
Hsiao Hsin-yi (蕭信義), director of the demonstration, said Taipower is allowed a fixed profit margin of 3 percent, while surplus profit is invested in developing sources of renewable energy, but independent power producers are not required to divert funds to renewable energy development unless they have a profit margin of more than 25 percent.
“What is lining the pockets of businesses if this is not?” Hsiao asked.
Nations and regions that have liberalized their power markets — such as the UK, Germany, Spain, California in the US, Ontario in Canada and the Philippines — have suffered from skyrocketing electricity prices, while Japan and South Korea aborted liberalization plans.
Liberalization does not necessarily lead to decreased commodity prices, Hsiao said, citing as an example Formosa Plastics Group (台塑集團), which promised prices one-third of those of state-owned oil refiner CPC Corp, Taiwan (台灣中油) that never happened after the oil industry was deregulated.
The liberalization of the energy market will also be detrimental to the development of “green” energy, as the government’s procurement policy on renewable energy has forced Taipower to sell “green” energy at prices much lower than procurement costs to support the burgeoning industry, said Hsiao Hsuan-chung (蕭鉉鐘), deputy director of the demonstration.
“Once the power market is liberalized, independent power producers will no longer invest in renewable energy and will instead opt for the cheapest coal-fired power generation,” Hsiao Hsuan-chung said.
Independent power producers will also be able to capitalize on Taipower’s infrastructure without paying for construction and maintenance costs, creating an unfair environment for competition, he said.
Tseng said the demonstrators demand that the power industry remain state-owned to keep electricity prices stable and to develop renewable energy.
Executive Yuan spokesman Tung Chen-yuan (童振源) said the Ministry of Economic Affairs would communicate with Taipower employees and the public after it finalizes the draft amendment.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College