TAIPEI (Taiwan News) — Taipower announced that higher summer electricity rates for residential users and small businesses will take effect from June 1 through Sept. 30.
According to the utility, the seasonal electricity pricing system has been in place since 1989. Industrial and commercial (high-voltage users) began paying higher rates on May 16, which will continue until Oct. 15, per CNA.
During non-summer months last year, average household electricity consumption was 308 kWh per month, resulting in an average monthly bill of NT$638 (US$20.30). During the summer, average monthly electricity consumption rose to 418 kWh as higher temperatures drove greater air-conditioning use, raising the average bill to NT$1,084.
The increase represented an average rise of approximately NT$446 per month, or nearly 70%.
However, Taipower said most of the increase was due to higher electricity usage rather than seasonal pricing adjustments. Of the NT$446 increase, around 73%, or NT$326, resulted from increased electricity consumption, while about 27%, or NT$120, was attributable to the summer rate adjustment, per CNA.
Taipower said households may choose between time-of-use pricing and the standard progressive pricing system. Most households in Taiwan use the progressive pricing model, which divides electricity consumption into six pricing tiers. Under the system, the first and second tiers are priced lower to reduce the burden on lower-income households, which generally consume less electricity.
For example, for an average monthly summer electricity usage of 418 kWh, the first 120 kWh is charged at NT$1.68 per kWh, the next 210 kWh at NT$2.45 per kWh, and the remaining 88 kWh at NT$3.70 per kWh. Under the standard pricing model, charges are based solely on total electricity consumption rather than the time of day electricity is used.
