It is common knowledge that average electricity rates in Taiwan are much lower than those in other countries, and have basically remained the same for decades. The industrial electricity prices are especially low.
During the past several years of economic growth, industrial power consumption has increased, and in recent years, due to the war between Russia and Ukraine, energy costs have increased drastically. If electricity prices are not raised, taxpayers basically have to subsidize the electricity bills of industries and big corporations.
Taiwan Power Co has deficits running into the hundreds of billions of New Taiwan dollars. The main reason is low electricity prices. Of course, the government should take care of the public, especially disadvantaged groups.
That is why when the Executive Yuan laid out the policy of raising electricity rates, industrial and corporate users were targeted first. Disadvantaged groups, household electricity users and industrial electricity users suffering economic losses are excluded.
Some people have said that the electricity prices have to be raised because of the government’s non-nuclear energy policy. This is not the case.
In South Korea, nuclear energy accounts for 30 percent of the country’s electricity generation, but the cumulative losses of electricity companies have surpassed NT$750 billion (US$23.51 billion). In France, nuclear energy accounts for 60 percent of electricity generation, but the cumulative losses of the electricity companies are about NT$570 billion.
The French government has had to provide a subsidy of NT$670 billion to cover the losses. Obviously, electricity rates have more to do with the enormous increase of energy costs as a result of global events.
Given that electricity prices in Taiwan are too low, industrial users have been able to take advantage of this and consumption has increased year by year. If electricity rates continue to remain the same, this means that all Taiwanese would have to pay for costs that keep rising. This is not fair at all.
In advanced countries, everything is based on a free-market mechanism. In Taiwan, however, rate changes have to go through an electricity price review committee organized by the Ministry of Economic Affairs. In this way, energy costs can be discussed and the public’s well-being can be ensured.
The electricity rate policies in 2022 and last year proved that only those who consumed a great amount of electricity were impacted by the increase. For household electricity users, no harm was done.
Additionally, the government considered factors such as the COVID-19 pandemic to adjust electricity rates accordingly. In 2022, when electricity prices were raised, it did not affect the industrial sectors focused on domestic demand, while social welfare organizations were excluded.
When electricity rates are raised, only those who consume a great amount of electricity and the industrial sectors will be affected. These users have been benefiting from Taiwan’s inexpensive electricity prices, and it is right that they should be asked to pay more for energy from now on.
These major power consumers are perfectly aware of increases in manufacturing costs and the need to adjust product prices, but when it comes to dealing with energy costs, they try to prevent a reasonable change to the electricity rates.
They simply want to take advantage of taxpayers and such an attitude is unacceptable.
Chen Ping-hei is a distinguished professor in National Taiwan University’s Department of Mechanical Engineering.
Translated by Emma Liu
Trying to force a partnership between Taiwan Semiconductor Manufacturing Co (TSMC) and Intel Corp would be a wildly complex ordeal. Already, the reported request from the Trump administration for TSMC to take a controlling stake in Intel’s US factories is facing valid questions about feasibility from all sides. Washington would likely not support a foreign company operating Intel’s domestic factories, Reuters reported — just look at how that is going over in the steel sector. Meanwhile, many in Taiwan are concerned about the company being forced to transfer its bleeding-edge tech capabilities and give up its strategic advantage. This is especially
US President Donald Trump’s second administration has gotten off to a fast start with a blizzard of initiatives focused on domestic commitments made during his campaign. His tariff-based approach to re-ordering global trade in a manner more favorable to the United States appears to be in its infancy, but the significant scale and scope are undeniable. That said, while China looms largest on the list of national security challenges, to date we have heard little from the administration, bar the 10 percent tariffs directed at China, on specific priorities vis-a-vis China. The Congressional hearings for President Trump’s cabinet have, so far,
The US Department of State has removed the phrase “we do not support Taiwan independence” in its updated Taiwan-US relations fact sheet, which instead iterates that “we expect cross-strait differences to be resolved by peaceful means, free from coercion, in a manner acceptable to the people on both sides of the Strait.” This shows a tougher stance rejecting China’s false claims of sovereignty over Taiwan. Since switching formal diplomatic recognition from the Republic of China to the People’s Republic of China in 1979, the US government has continually indicated that it “does not support Taiwan independence.” The phrase was removed in 2022
US President Donald Trump, US Secretary of State Marco Rubio and US Secretary of Defense Pete Hegseth have each given their thoughts on Russia’s war with Ukraine. There are a few proponents of US skepticism in Taiwan taking advantage of developments to write articles claiming that the US would arbitrarily abandon Ukraine. The reality is that when one understands Trump’s negotiating habits, one sees that he brings up all variables of a situation prior to discussion, using broad negotiations to take charge. As for his ultimate goals and the aces up his sleeve, he wants to keep things vague for
RSS