Taiwan's Electricity Prices Frozen: A Surprising Decision Amidst Financial Challenges

In a surprising turn, the electricity price review committee decides to hold electricity prices steady, despite significant financial losses at Taipower.

Against expectations, the electricity price review committee in Taiwan has decided to maintain current electricity prices starting in April. This decision comes despite significant financial losses experienced by Taipower, with accumulated deficits exceeding NT$400 billion, and the legislative body's blockage of governmental subsidies.

The committee cited concerns about potential international economic and price fluctuations arising from changes in international tariffs and geopolitical risks as the basis for its decision. The committee has requested that the Ministry of Economic Affairs make every effort to secure funding for Taipower from the Legislative Yuan.

The Ministry of Economic Affairs explained that the dramatic increase in international fuel prices from 2022 to 2024 has led to electricity price hikes across the globe, contributing to inflation. For instance, in 2024, France saw cumulative electricity price increases of 47% for residential consumers and 65% for industrial users. South Korea experienced increases of 49% and 106%, respectively. Taiwan, aiming to protect citizens, maintain stable prices, and preserve industrial competitiveness, has adopted a gradual approach to electricity price adjustments. Taipower has absorbed some of the impact of rising international fuel costs, resulting in an accumulated deficit of NT$422.9 billion by the end of 2024. The review committee recommends that the Ministry of Economic Affairs vigorously seek legislative support to provide financial aid to Taipower, ensuring the company's financial stability and long-term operational sustainability.