Taiwan girds for higher electricity prices

Rate increases to be scheduled every year instead of every three months.

The state-run Taiwan Power Company wants electricity rates to be adjusted once every year rather than once every three month to prevent fluctuations in the commodity price index. The new rates will most likely go into force October 1 at the earliest.

Chairman Hwang Jung-chiou said the annual adjustment proposal is likely to be adopted. The exact extent of the new rates for households and industry will be discussed separately, he noted.

Hwang revealed an electricity rate adjustment formula has already been drafted, under which electricity rates will be adjusted based on changes in fuel costs, nonfuel costs and reasonable profits.

The planned formula is now being reviewed by officials at the Bureau of Energy under the Ministry of Economic Affairs. The final package, including the implementation date, will have to receive the consent of the ministry and the Cabinet before it can be implemented.