A recent power outage has sparked discussions on the possibility of a power supply crisis.
Over 700 households in Taipei's eastern district experienced an hour-long power outage on Thursday. The Da’an District, including Fuxing South Road and parts of Dunhua South Road, was plunged into darkness, with almost all businesses experiencing a full hour before power was restored. Taiwan Power Company (Taipower) says it was because of defective equipment.
However, with several recent power outages, thoughts about potential power rationing are being raised. In response, Taipower President Wang Yao-Ting (王耀庭) said the company has resorted to high-priced electricity purchases, with an average of NT$5-6 (US$0.18) and reaching a peak price of NT$12 (US$ 0.37) per kilowatt-hour.
Since 2015, Taipower has employed a bidding system to manage electricity demand during sudden load increases or temporary unit failures which allows users to bid freely and prioritizes bids up to NT$10 per kilowatt-hour. However, due to the emergency outage on Monday, the company increased repurchases by 20%, leading to a ceiling price of NT$12 and a total electricity purchasing cost exceeding NT$20 million (more than US$615,000) for the day.
The international standard demand bidding system has been used for years to dispatch electricity. However, Taiwan's recent electricity price hike and continuous outages and blackouts in various areas have raised concerns among the public feeling powerless about the possibility of a power supply crisis