Power Rate Hikes Become Trend Owing to Gov’t Energy Transformation Policy

 Power Rate Hikes Become Trend Owing to Gov’t Energy Transformation Policy

Source: UDN

June 25, 2019

Many countries in the world that push energy transformation face the pressure of power rate hikes. According to the Economics Ministry, after Taiwan’s energy transformation, electricity rates will be increased by 30% to NT$3.39 per kWh by 2025 from NT$2.55 per kWh in 2017. Power rate hikes have become a trend owing to the government’s energy transformation policy.

In recent years, Taipower’s power generation costs have gradually hiked as it increased the generation of natural gas-fired power to reduce coal-fired power generation. However, the Electricity Rates Review Committee worried that hiking power rates would impact commodity prices, so it decided, by resolution twice, not to increase household electricity rates. Therefore, Taipower showed a turn from profit to loss last year and was in the red to the tune of NT$17.3 billion (approx. US$557 million) in Q1 this year. Although the government has allocated funds in its general budget to the Power Rate Stabilization Fund for Taipower, once the Fund runs out, people still have to face the pressure of higher electricity bills.

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