State-run Taiwan Power Co (Taipower, 台電) plans to raise electricity rates for heavy users by an average of 8.4 percent from next month, as rising global energy prices have significantly eaten into its bottom line, snapping four consecutive years of price freezes.
Industrial users such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) would bear the brunt of the hikes, facing an increase of 15 percent.
About 22,000 heavy users would be affected, the Ministry of Economic Affairs said in a statement after a meeting of the electricity price review committee yesterday.
Photo: CNA
The rate for heavy users of electricity would climb to NT$3.1039 per kilowatt-hour (kWh), from NT$2.699 per kWh, while the price for extra-heavy users would rise to NT$2.5707 per kWh, from NT$2.2354, it said.
Households with monthly consumption of more than 1,000kWh would see their rate rise 9 percent, it said.
“As persistent fuel price hikes have put Taipower’s operations under heavy pressure, it should [raise electricity tariffs to] reflect costs to keep power supply stable,” Deputy Minister of Economic Affairs Lin Chuan-neng (林全能) told a news briefing in Taipei after the meeting.
“Compared with price hikes of between 13 and 45 percent in some countries, Taiwan’s price increase ... falls on the low end of the global price hike range,” Lin said. “We have considered Taiwan’s global competitiveness in the pricing adjustments.”
Global crude oil prices are expected to rise to US$107 per barrel this year, which would push natural gas prices up to US$19.63 per cubic meter, the ministry said, adding that global coal prices are expected to rise to US$307 per tonne.
Taipower would see an increase in costs of about NT$300 billion (US$10.13 billion) this year due to surges in global fuel prices, it said.
To help small businesses recover from the COVID-19 pandemic, the ministry is freezing rates for major users in six sectors: food processing, farmers, fishers, and department store, movie theater and gym operators.
The ministry is also keeping electricity rates unchanged for households, small-scale retailers, restaurants and schools with a monthly consumption of less than 1,000kWh, in an attempt to prevent inflation from rising further.
About 12.72 million users would benefit from the price freeze, it said.
CHAOS: Iranians took to the streets playing celebratory music after reports of Khamenei’s death on Saturday, while mourners also gathered in Tehran yesterday Iranian Supreme Leader Ayatollah Ali Khamenei was killed in a major attack on Iran launched by Israel and the US, throwing the future of the Islamic republic into doubt and raising the risk of regional instability. Iranian state television and the state-run IRNA news agency announced the 86-year-old’s death early yesterday. US President Donald Trump said it gave Iranians their “greatest chance” to “take back” their country. The announcements came after a joint US and Israeli aerial bombardment that targeted Iranian military and governmental sites. Trump said the “heavy and pinpoint bombing” would continue through the week or as long
TRUST: The KMT said it respected the US’ timing and considerations, and hoped it would continue to honor its commitments to helping Taiwan bolster its defenses and deterrence US President Donald Trump is delaying a multibillion-dollar arms sale to Taiwan to ensure his visit to Beijing is successful, a New York Times report said. The weapons sales package has stalled in the US Department of State, the report said, citing US officials it did not identify. The White House has told agencies not to push forward ahead of Trump’s meeting with Chinese President Xi Jinping (習近平), it said. The two last month held a phone call to discuss trade and geopolitical flashpoints ahead of the summit. Xi raised the Taiwan issue and urged the US to handle arms sales to
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday said that it had confirmed on Saturday night with its liquefied natural gas (LNG) and crude oil suppliers that shipments are proceeding as scheduled and that domestic supplies remain unaffected. The CPC yesterday announced the gasoline and diesel prices will rise by NT$0.2 and NT$0.4 per liter, respectively, starting Monday, citing Middle East tensions and blizzards in the eastern United States. CPC also iterated it has been reducing the proportion of crude oil imports from the Middle East and diversifying its supply sources in the past few years in response to geopolitical risks, expanding
Pro-democracy media tycoon Jimmy Lai’s (黎智英) fraud conviction and prison sentence were yesterday overturned by a Hong Kong court, in a surprise legal decision that comes soon after Lai was jailed for 20 years on a separate national security charge. Judges Jeremy Poon (潘兆初), Anthea Pang (彭寶琴) and Derek Pang (彭偉昌) said in the judgement that they allowed the appeal from Lai, and another defendant in the case, to proceed, as a lower court judge had “erred.” “The Court of Appeal gave them leave to appeal against their conviction, allowed their appeals, quashed the convictions and set aside the sentences,” the judges
RSS