TAIPEI (Taiwan News) — General Chamber of Commerce of Taiwan Chair Hsu Shu-po (許舒博) warned electricity rates will rise across the board if subsidies are not restored to state-run Taipower.

Hsu made the remarks at the organization's annual spring banquet on Tuesday evening. He said the legislature should conditionally consent to the budget allocation to stabilize Taipower finances rather than continually subsidizing electricity rates, per CNA.

The Cabinet is expected to file a review on the government budget and seek reinstatement of a NT$100 billion (US$3.05 billion) subsidy for Taipower. However, if it is deleted again, electricity prices will inevitably increase.

Hsu added that many Electricity Price Review Committee members believe power generation should be diversified. However, compliance with government policies prevents such diversification, causing electricity prices to rise.

Hsu agreed that Taipower needs to be self-sufficient. He said the alternative would pit the government and the opposition party in a continual state of confrontation, which would be detrimental to the country over the long term.

Economics Minister Kuo Jyh-huei (郭智輝) recently expressed hope that the legislature will reconsider allocating NT$100 billion to improve Taipower's finances. He explained that lower electricity rates will boost Taiwan industries, the majority of which are export-orientated.