Taiwan's Power Price Surge: Electricity Price Hikes Spark Investor Action

Energy Sector Reacts as Potential Electricity Price Increases Loom in Taiwan

The upcoming electricity price review in Taiwan this Friday has sent ripples through the market. According to internal discussions at Taipower (Taiwan Power Company), residential electricity users consuming under 330 degrees and small businesses under 330 degrees could face electricity price increases ranging from 11% to 33%.

This news has triggered a surge in the "heavy electrical equipment" sector on April 26th. Shares of Shieh Electric & Engineering (1503), Ar Light (1514) saw intraday gains exceeding 3%, while Hua Chin Electric (1519), Chung-Hsin Electric (1513), and Tatung (2371) also experienced price increases of over 2%.

Taipower's justification for the potential price hike includes the failure to secure government subsidies. Economic Minister Kuo Chih-hui (郭智輝) has not explicitly confirmed that subsidies will prevent the price increase, stating that it's a significant factor. He emphasized that he will present the specific details to the price review committee, which will ultimately decide on any electricity price adjustments.