TAIPEI (Taiwan News) — Taiwan will see an average electricity price increase of 0.71%, effective October, the Electricity Price Review Committee announced Friday.

The adjustment raises the average residential rate, the price charged to households, from NT$3.7556 (12 cents) per kilowatt-hour (kWh) to NT$3.7823 per kWh. Industrial electricity rates, which apply to factories and large businesses, remain unchanged at NT$4.27 per kWh.

Residential rates will see tiered increases, averaging a 3.12% hike. In setting the new rates, the committee considered factors including the impact of US tariffs, consumer affordability, and maintaining a sustainable electricity pricing structure, according to CNA.

The changes will affect about 14.51 million accounts, including 13.6 million households and 910,000 small businesses. A typical family of four using around 700 kWh per month will see their electricity bill rise by no more than NT$70, with small businesses facing a similar increase.

Taiwan Power Corp. had initially proposed a 6.45% increase, factoring in a reasonable profit margin. The committee opted for a smaller adjustment, focusing on moderate residential rate increases while keeping industrial rates steady to avoid adding economic pressure amid ongoing US tariff uncertainties.

Under the new structure, households consuming less than 700 kWh will pay NT$0.1 more per kWh, those using 701–1,000 kWh will see a NT$0.2 increase, and usage above 1,000 kWh will rise by NT$0.4 per kWh. The larger increase for high-consumption households aims to encourage energy conservation.

Vice Minister of Economic Affairs Lai Chien-hsin (賴建信) said the adjustment is intended to narrow the long-term gap between electricity prices and supply costs. The current average residential rate of NT$2.77 per kWh remains well below the supply cost of NT$3.8 per kWh.