The General Public Will Have to Foot the Bill for the Tsai Gov’t’s Free Lunch

 The General Public Will Have to Foot the Bill for the Tsai Gov’t’s Free Lunch

United Daily News Editorial (Taipei, Taiwan)

September 23, 2019

 Translation of an Excerpt

The Electricity Rate Review Committee under the Ministry of Economic Affairs a couple of days ago resolved to freeze electricity rates again; since the new formula for calculating electricity rates came into effect in 2017, this is the third consecutive freezing of rates. This time the freeze will last until the end of March next year, in other words, before the general elections next January, regardless of whether the international energy market undergoes tumultuous changes, Taiwan's electricity rates would remain unchanged. The sugar-coating of "three consecutive freezes" of electricity rates wraps Taipower’s huge losses, the collapse of the mechanism for adjusting electricity rates, and the selfishness of the ruling party in using public funds for electioneering purposes.

When the Economics Ministry reviewed electricity rates last March, because international fuel prices rose, Taipower recommended an increase in electricity rates; however, at that time, the Economics Ministry highhandedly shepherded the decision-making, claiming that the international fuel prices would “soon come down” leading to the continued freezing of electricity rates. At that time, the Economics Ministry stated officially with confidence that looking at the trends of international fuel prices, up to October this year, electricity rates would have no pressure for adjustment. However, the Economics Ministry’s prophesy was sheer nonsense. After that meeting, international fuel prices climbed instead of falling; Taipower in the first eight months of this year has accumulated losses amounting to NT$20.2 billion, a nearly 60% increase year-on-year. In the middle of this month, Saudi Arabian crude oil processing plants were attacked, greatly reducing production capacity, rocketing international crude oil prices at one time. Under such circumstances, the Economics Ministry still uses “international energy prices are on the decline” as the grounds for freezing electricity rates, which is both deceiving and self-deceptive. Taipower’s losses have been expanding; the Economics Ministry has been optimistic through wishful thinking with regards to trends of energy prices. Aside from avoiding energy issues becoming a stumbling stone for President Tsai’s re-election bid, there is no better explanation.

Look again at the Electricity Rates Stabilization Fund, which should have been used only in emergency cases; the Tsai government, however, frequently extends its hand into it. Now the fund has sharply dwindled from NT$80 billion to only a little over NT$40 billion. After freezing electricity rates three consecutive times, the Stabilization Fund will inevitable expand its bleeding. The Stabilization Fund was originally designed to stabilize electricity rates; now it has been used to stabilize President Tsai’s electoral prospects.

From subsidizing taxicab drivers in buying new cabs, to issuing coupons for night markets, to freezing electricity rates and long-term care subsidies, all Cabinet ministries have been busy introducing various kinds of free lunches for the voters. The Tsai government’s money-squandering policies will emerge endlessly before election time. There is no free lunch in the world, but the Tsai government is anxious to offer it before election time; after the election, the public will have to foot the bill and suffer.

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