Taiwan freezes electricity rates to support economy

Taipei, Sept. 18 (CNA) Electricity rates in Taiwan will remain unchanged from October, the Ministry of Economic Affairs (MOEA) announced Friday following a review, citing the need to stabilize prices and support industrial development.

The ministry decided to keep the average rate at NT$3.7823 (US$0.11) per kilowatt-hour, unchanged from the level set at its previous review in March.

According to the MOEA, state-run utility Taiwan Power Co. (Taipower) reported that rising fuel costs driven by ongoing conflicts in the Middle East had increased its power generation and procurement expenses, which would justify a 12.83 percent rate increase.

Without the conflicts, Taipower might have recorded a surplus this year, the MOEA said.

The utility spent NT$71.1 billion (US$2.24 billion) from March to August absorbing costs that would otherwise have been passed on to consumers through higher electricity rates, the ministry added.

The MOEA said it will ask the Executive Yuan to allocate NT$71.1 billion through a supplementary budget to cover those costs, helping stabilize prices, curb inflation, and support industries ranging from energy-intensive artificial intelligence businesses to traditional sectors undergoing transformation.

Electricity rates could be reconsidered in December, when a third tariff review will be held alongside discussions on power wheeling charges, the ministry said.