Taiwan electricity rates could rise for 13.6 million households in April

台灣4月1,360萬戶電價可能上漲

Ministry of Economic Affairs to meet with Taipower to discuss electricity rates


TAIPEI (Taiwan News) — The Ministry of Economic Affairs (MOEA) announced it will meet with Taipower to discuss increasing electricity rates for households, businesses, and industries, with higher rates potentially taking effect as early as April.

The MOEA said a meeting scheduled for March will allow the two sides to discuss a new pricing structure. However, any agreed-upon rate hike will require ratification by the MOEA's electricity price review committee, per UDN.

According to the MOEA, all categories will be included in a rate hike. This includes private households that consume below 330 kWh per month (non-luxury residences that consume the minimum amount of electricity). Rates for these households have been frozen to protect the most vulnerable social groups.

The MOEA said some households have cheated this lower rate category by installing multiple electrical meters in their homes. To solve this problem, rates for this category will be increased or standardized.

Officials played down the news of the rate hike, saying a 5% hike for households consuming less than 330 kWh per month would only result in an NT$30 (US$1) increase in their monthly electrical bill. The MOEA said it believes the higher rate would have little impact on ordinary people.

Furthermore, the MOEA said higher rates were needed to stem Taipower's snowballing financial woes like losses of NT$198.5 billion in 2023. To maintain Taipower's solvency, the MOEA allocated central government funds of NT$100 billion and has voiced support for higher electricity rates.

On average, electricity rates rose 11% in 2023 (residential rates rose 2.6% and industrial rates rose 14.2%). The current average electricity price is NT$3.11/kWh (NT$2.65/kWh for households, NT$3.38/kWh for industries), per Storm Media.

According to an official familiar with Taipower’s operations, the average cost of producing and distributing energy is NT$4/kWh, indicating a rate hike is needed to cover financial shortfalls.