Taiwan’s electricity rates are to remain at NT$2.6253 per kilowatt hour (kWh) for the next six months despite rising fuel costs, the Ministry of Economic Affairs said yesterday.
The decision came after a meeting of its electricity price review committee, which determined for the seventh consecutive time that prices are to be kept frozen. A rate hike would hurt the economy, which is still reeling from this year’s COVID-19 outbreak, the ministry said.
“As we are still in the process of providing relief to businesses, the committee decided that it was not the right time to raise prices,” Bureau of Energy Deputy Director-General Lee Chun-li (李君禮) said.
Photo: Lin Jing-hua, Taipei Times
If the electricity rate had been calculated with rising fuel costs taken into account, it would have been raised by 1.20 percent, taking it to NT$3.8253 per kWh. The next meeting to determine electricity rates is to take place in April next year.
Fuel is the primary cost consideration of the state-run Taiwan Power Co (Taipower, 台電). According to Taipower’s latest data, about 40 percent of the country’s electricity is generated from gas and 35 percent from coal.
While about 60 percent of the gas is secured through long contracts tied to the cost of oil, the rest is secured on the “spot market,” which has been surging around the world. Coal prices are also up, the ministry said in a statement.
Renewable energy is a growing source of power, particularly solar. About 10 percent of yesterday’s power generation was solar generated at its peak mid-afternoon, Taipower said.
Due to climate change, Taiwan’s “summer peak usage” has started earlier, resulting in the ministry moving its higher summer pricing two weeks earlier into mid-May starting next year.
“In accordance with Taipower’s recommendations, summer pricing will start on May 16 next year for high-voltage users,” the ministry said.
The changes are to be implemented first for Taiwan’s approximately 25,000 high-voltage electricity users, it said.
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