Electricity prices are expected to increase by an average of 11%, the Ministry of Economic Affairs (MOEA) said on Friday (March 17), following Taipower's NT$267.5 billion (US$8.74 billion) loss in 2022.
The price hikes will be implemented on April 1, and will mainly affect high-use consumers in the industrial and commercial sectors, per CNA. The MOEA said that households using under 700 kWh, and small shops using under 1500 kWh will not be subject to the increases, meaning that 93% of residential buildings and 84% of small businesses will not be affected.
Households and businesses exceeding the 700 and 1500 kWh thresholds will pay an extra 3% for power, up to 1000 and 3000 kWh respectively. Prices for residential use over 1000 kWh will increase by 10%, while prices for commercial use over 3000 kWh will increase by 5%.Educational institutions, from kindergartens through to universities, will not pay extra for electricity, according to the MOEA.
Vice Minister of the MOEA Chuan-Neng Lin (???) said that despite the relative decline in global energy prices over recent months, prices were still generally high, causing the price hikes for Taiwan's consumers. Lin said Taipower lost NT$1.20 for every kWh of energy sold in 2022.
Taipower President Yao-Ting Wangsaid that for residential consumers, electricity prices would increase 2.6% on average, and 14.2% on average for industrial users. Lin said that in addition to schools, the fisheries and agricultural sectors will not be subject to the increases, but this will be reviewed in the second half of the year.