The Ridiculousness Behind Guarantee of No Hikes in Gas & Electricity Prices

  The Ridiculousness Behind Guarantee of No Hikes in Gas & Electricity Prices

China Times Editorial (Taipei, Taiwan)

December 12, 2017

 Translation of an Excerpt

Economics Minister Shen Jong-chin recently, in answering a question from DPP legislator Huang Wei-cheh about the “taboo” of the dual hikes in gas and electricity prices, declared that although prices of energy sources on the international market show a climbing tendency, electricity price hikes would cause commodity prices to rise, so the government would control electricity prices with the Electricity Price Stabilization Fund of NT$80 billion, thus electricity prices could be maintained till next October. This Q&A had obviously been rehearsed; Shen Jong-chin exhibited the responsibility befitting a Cabinet minister, while a DPP MP secured a guarantee from the government of no hikes in gas and electricity prices, leaving both parties satisfied. However, behind Shen Jong-chin's "guarantee," it demonstrated the contradictions of DPP government’s public policy and the ridiculousness of its energy policy; this merits deeper exploration.  

Shen Jong-chin declared "electricity price stability"; what is hard to understand is the ridiculousness and contradictions of the DPP government's electricity price and energy policy. On the surface, it looks like due consideration has been given to ordinary citizens’ livelihood and economic development, but in reality, the approach was to pile up the electricity price all the way. The Green camp wants to completely scrap nuclear power, which has lower costs, and some of the reactors still could be operational before decommissioning; instead it has been investing up to a trillion NT dollars in green energy which is several times more costly than nuclear power and coal-fired generators. It also wants to replace, in a massive scale, coal-fired generators with more costly LNG; the sharp increase in power generation costs is imaginable.

With regard to the issue of electricity prices, the Economics Ministry should forecast prices in accordance with the prices and changes of fuel on the international market. Whether the fuel prices rise or fall, electricity prices should be decided by professionalism and not through political considerations. The second is to re-examine the energy policy. Based on the current situation of implementation, the Tsai government's energy policy could lead to the simultaneous appearance of the three worst case results: power shortages, rising electricity prices, and increased air pollution. The government cannot remain oblivious.

The power supply policy, from planning to implementation, often takes more than 10 years time; we urge the Tsai government to pragmatically review its energy policy in order to cope with these realities and not lead Taiwan into a decade of calamity!

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