Taiwan's electricity rate review committee concluded at its second meeting of the year that no adjustment would be made now. A calculated increase of 12.83 percent was set aside, and the government will seek a supplementary budget of NT$71.1 billion for Taipower. The decision moves to December.
The Ministry of Economic Affairs convened the year's second rate review on Sept. 18 and decided to freeze rates temporarily, deferring the adjustment to a third meeting in December.
광고 문의 · 300×250According to the ministry, the calculation implied a 12.83 percent increase this round, the result of higher generation and purchase costs after Middle East tensions drove up international fuel prices. Taipower is projected to lose more than NT$71.1 billion for the full year.
The Executive Yuan said it would seek a supplementary budget to cover NT$71.1 billion for the utility. Taipower's NT$76 billion profit last year was cited as the cushion behind the freeze. The company said it had accumulated losses of NT$20.3 billion in the first eight months of this year.
Why December
The December meeting will take up residential and industrial rates together with transmission and distribution charges. Any adjustment would take effect on Jan. 1. Pushing the discussion to year-end reflects both a desire to watch fuel prices longer and the procedure for fixing the size of budget support on a fiscal-year basis.
Opposition legislators question the subsidy approach itself. Taiwan People's Party lawmakers argue Taipower should first present a financial reform plan, contending that repeated transfers weaken the signaling function of tariffs and leave only a fiscal burden.
The government and the ministry say the decision balances price stability against industrial competitiveness, arguing that passing through a fuel-cost spike in full would hit consumer prices and manufacturing costs at once.
What it means for households and small businesses
There are practical implications for ethnic Chinese families and businesses in Korea with ties to Taiwan. The freeze provides predictability through year-end, but a January adjustment remains open. Power-intensive lines of work such as restaurants, laundries and small manufacturing should review year-end contracts and equipment replacement against that timetable.
This paper does not read a freeze as a cut. The decision defers an increase to year-end, and the cost is paid through another channel in the form of budget support.
