TAIPEI (Taiwan News) — Economics Minister Kung Ming-hsin (龔明鑫) said Monday that keeping household costs and prices stable will remain priorities as Taiwan prepares to review electricity rates for October.
CNA reported that the electricity rate review committee will meet in September amid media reports that rates are likely to remain unchanged in October. Kung said the economics ministry will provide more information to the committee, but its members will make the final decision.
Kung said supporting people's daily needs and maintaining price stability have long been ministry policy goals. Asked whether the government's approach was influenced by upcoming elections, he said there was "no election consideration."
UDN reported that Taiwan Power Co. posted a pretax loss of NT$25.7 billion (US$803 million) in the first half of the year. The state-run utility's cumulative losses reached NT$376.4 billion as higher fuel costs continued to put pressure on its finances.
Electricity rates remain below the cost of generating power. Rates would need to rise about 7.3% to cover Taiwan Power's projected losses this year, although inflation concerns could make an increase less likely, per Economic Daily News.
Higher natural gas prices have also raised Taiwan Power's costs. CPC Corp., Taiwan increased natural gas prices for power generators by 9.91% in August, while Taiwan Power estimated that its monthly fuel costs were about NT$15 billion higher than before the latest escalation of conflict in the Middle East.
Premier Cho Jung-tai (卓榮泰) said the government would prioritize stable living costs as Taiwan Power absorbs higher liquefied natural gas costs. Cho said any electricity rate adjustment would ultimately be decided by the electricity rate review committee, per CNA.
