Debate continues over a freeze on the current electricity rate hikes. In an interview Wednesday before the Legislature, Economic Minister Wang Mei-hua (王美花) held that Taiwan Power Co (Taipower) has been operating at a deficit for too long, and needs the support provided by the rate hikes to operate smoothly.
In response to a proposed price hike that averaged 11%, lawmakers in the Kuomintang (KMT) and Taiwan People’s Party (TPP) proposed a freeze on electricity prices last month. Both parties put forth proposals to either slow down or stop price hikes altogether, leading to negotiations across caucuses in the Legislature.
Continuing those negotiations, Economic Minister Wang claimed that the Russia-Ukraine war had caused electric prices to soar internationally. Wang pointed out, compared to other countries, Taiwan’s electric prices had increased relatively slowly as a result of Taipower absorbing much of that cost. Because of that, Taipower has been operating at a loss for the last two years.
The Economic Affairs Ministry stated price increases, including the recent 11% increase, were carried out in accordance with the Electricity Act. The Economic Ministry respects the opinions of the Legislature and states the need for further follow-ups in regard to the current negotiations.