Taiwan postpones electricity rate hike, freezes prices pending December review
The Ministry of Economic Affairs will delay any new electricity tariffs until its December meeting, keeping rates at NT$3.78 per kilowatt-hour and seeking a NT$71.1 billion subsidy for Taipower.
At a press conference after the electricity price review committee, Deputy Minister Lai Chien-hsin said the Ministry of Economic Affairs will postpone any new electricity tariff adjustments until its December session, keeping the average rate at NT$3.78 per kilowatt-hour for now. Taipower had proposed raising rates by about 12.83% to NT$4.2675/kWh to cover rising energy costs, but the ministry is prioritizing a NT$71.1 billion subsidy to help the utility absorb fuel price surges since March, which it attributes partly to the Middle East conflict.
Taipower, which earned NT$76.1 billion last year, has already accumulated losses of more than NT$400 billion after absorbing high global crude prices, reporting a NT$21.4 billion loss in the first seven months of this year. The General Chamber of Commerce’s Paul Hsu opposed a blanket freeze, urging protection for households and small-medium enterprises while allowing modest adjustments for high-tech sectors such as AI data centers and semiconductor firms. The committee discussed differentiated rates for heavy power users but failed to reach agreement, leaving the issue to a working group for further review in December.
How the sides frame it
LOW AGREEMENTLeft-leaning coverage reports Taiwan postponing a planned electricity rate increase and highlights a large subsidy and the utility’s heavy losses, while centrist coverage reports Korea’s state-run utility keeping rates frozen for the fourth quarter despite higher fuel costs and financial difficulties.
LEFT
Frames the Taiwan decision as a protective measure that delays a rate hike and allocates a massive subsidy to offset the utility’s mounting losses tied to global fuel price spikes.
CENTER
Frames KEPCO’s decision as maintaining frozen rates in the face of rising raw-material costs and ongoing financial challenges.
The left emphasises
- postponement of any new electricity tariff adjustments until December
- NT$71.1 billion subsidy to help the utility absorb fuel price surges
- utility’s accumulated losses of more than NT$400 billion and a NT$21.4 billion loss in the first seven months
