Residential summer electricity rate hike to take effect June 1 in Taiwan

Taipei, May 11 (CNA) Taiwan Power Co. (Taipower) will implement its annual summer electricity rates for residential users from June 1 through Sept. 30, with the average monthly bill expected to rise to NT$1,084 (US$34.52) during the season.

According to a notice posted on the state-run utility's website, summer rates for approximately 15 million residential and small commercial users will begin June 1, while the seasonal pricing scheme for around 26,000 high-voltage and extra high-voltage users will begin earlier, running from May 16 to Oct. 15.

Taipower said the summer pricing mechanism has been in place since 1989, with domestic customers charged higher rates from June through September due to increased electricity demand, driven mainly by air conditioning and other cooling systems.

The average monthly household usage throughout the year is about 345 kilowatt-hours (kWh), the company said, citing data for 2025.

The data shows that during non-summer months, household electricity consumption in Taiwan averages 308 kWh per month, which costs NT$638, the company said.

In the summer months, the average monthly domestic usage rises to 418 kWh, pushing the bill up nearly 70 percent to NT$1,084, Taipower said.

The higher costs to residential consumers during the summer, however, are due largely to increased electricity usage rather than the rate hike, according to Taipower.

Electricity usage accounts for 73 percent of the increase, while the higher seasonal rates make up 27 percent, the company said.

Most households in Taiwan use the standard progressive pricing system, under which electricity rates rise depending on consumption levels rather than the time of day electricity is used.

Under the current six-tier pricing system for residential users, the first 120 kWh consumed during summer months is charged at NT$1.78 per kWh, the next 210 kWh at NT$2.55 per kWh, and the remaining 88 kWh at NT$3.80 per kWh.

Taipower said time-of-use plans, which charge different rates for peak and off-peak hours, are also available for residential users.

However, the standard progressive pricing system remains more cost-effective for most households with relatively low electricity consumption or usage concentrated during peak daytime hours, the company added.

Meanwhile, industrial consumers are usually subject to summer rate hikes from May 16 to Oct. 15 to encourage electricity conservation, according to Taipower.