Taiwan considers water price hike to address financial losses

Taipei, March 16 (CNA) Taiwan Water Corp. (TWC) is considering a water price hike to counter mounting financial losses, and plans to submit a pricing review report to the Ministry of Economic Affairs by the end of March.

In an advanced copy of the report seen by CNA Sunday, the state-run utility said it aims to secure financial support or adjust pricing while minimizing the impact on residential users.

TWC currently incurs a loss of NT$2.45 (US$0.07) per cubic meter of water sold, the report said.

Taiwan's water rates have remained unchanged for 31 years. The current pricing structure has four tiers: NT$7.35 per cubic meter for up to 10 cubic meters of water, NT$9.45 for 11 to 30 cubic meters, NT$11.55 for 31 to 50 cubic meters, and NT$12.075 for any consumption exceeding 50 cubic meters.

TWC's preliminary proposal suggests keeping the first-tier rate unchanged, applying moderate increases to the second and third tiers, and introducing larger hikes with additional brackets for the fourth tier.

Initial estimates indicate that at least 60 percent of consumers would not be affected, according to the report.

The final decision on any changes will be made by the Executive Yuan, the report said.

In 2024, TWC posted a post-tax loss of NT$3.94 billion, with losses expected to grow to NT$5.93 billion in 2025. The company cited rising costs, including depreciation, interest payments, and ongoing efforts to reduce water leakage, as key financial pressures.

In January 2025, Premier Cho Jung-tai (卓榮泰) urged the public to accept "fair" water pricing, while Economics Minister Kuo Jyh-huei (郭智輝) instructed TWC to submit its pricing adjustment review by the end of March.

An additional initiative under consideration is a water quality-based pricing model, which would introduce premium pricing for higher-quality drinking water, creating an additional revenue stream for TWC.

The proposal involves installing water purification equipment at the consumer level, allowing households and businesses that currently use private filtration systems to access certified purification services directly from TWC, sources familiar with the matter said.

TWC's in-house water quality testing capabilities would ensure compliance with drinking water standards, the sources said, adding that however, the feasibility of the system and its impact on the overall water distribution network require further evaluation.