TAIPEI (Taiwan News) — Electricity prices will increase by an average of 12.5% for larger businesses, while fees for other customers will remain frozen, Taiwan’s Ministry of Economic Affairs announced on Monday.
The price increase will raise electricity costs from NT$3.81 (US$0.12) per kilowatt hour to NT$4.29 starting on Oct. 16, according to a ministry statement. Approximately 14.52 million residential and small business customers, as well as industries with declining electricity consumption or output, will be exempt from the price hikes.
This will be the second price hike in 2024. Taipower, the state-owned utility company, is currently losing NT$0.4 for every kilowatt of power sold, and the price increase is necessary to ensure the company can continue to develop and maintain a stable power supply, the ministry said.
Taipower had previously stated in January that there were no plans to raise electricity prices in 2024. However, speculation about a price hike grew as reports indicated that Taipower’s losses in 2023 had reached upwards of NT$380 billion, largely due to rising global fuel prices.
The ministry emphasized that, given the close relationship between electricity prices and the cost of consumer goods, certain businesses—including street vendors, mass merchandisers, and supermarkets—will not be subject to the price increase. It also pointed out that, even with the hike, electricity costs for affected businesses will still be lower than those in Korea and Japan.
Additionally, the ministry said it is committed to conserving energy. It noted that energy-saving measures in 10 public buildings had resulted in a reduction of 4.05 million kilowatt hours of electricity, though it did not specify the time period over which these savings were achieved.