Taiwan's Ministry of Economic Affairs (MOEA) on April 12 announced the upward adjustment in power charge rates by an average of 16.9% for residential users, 30% for commercial users, and 35% for industrial users, with new rates to take effect on May 15.
After the upward adjustment, Taiwan's power rates for residential and industrial users will be lower than those in Japan, Singapore, the Philippines and Hong Kong but higher than those in Malaysia and South Korea, MOEA indicated.
The price hikes are in response to increased international prices for fuel used to generate electricity, MOEA pointed out. State-run Taiwan Power Company (Taipower) recorded average power-generating costs of NT$2.82 per kWh (kilowatt-hour) in 2011, higher than the average power charge rates of NT$2.60/kWh, MOEA indicted. Due to low prices, Taipower has suffered operating losses since 2008 and its cumulative operating loss increased to NT$132.2 billion (US$4.3 billion) as of the end of February 2012, MOEA said.
The price hikes are estimated to cause an increase of 0.46pp in CPI (consumer price index) and a decrease of 0.26pp in economic (GDP) growth, MOEA noted.
