Taipower to freeze power rate for 6 months

Taiwan Power Co (Taipower, 台電) is to keep electricity rates unchanged for six months from next month in an effort to curb inflation risks due to the Middle East conflict, which has bumped global crude oil prices to more than US$100 per barrel, the Ministry of Economic Affairs said yesterday. The average electricity rate would stay unchanged at NT$3.78 per kilowatt-hour for the next six months, Deputy Minister of Economic Affairs Lai Chien-hsin (賴建信) told a news conference after the electricity price review committee wrapped up its meeting. Based on its pricing formula and an increase in the cost of generating power, Taipower had proposed raising electricity rates by an average of 1.79 percent to NT$3.85 per kilowatt-hour on average, Lai said. Photo: CNA However, the committee froze price hikes, Lai said, adding that the decision was based on the potential effects of rising global fuel prices amid the US-Israeli war with Iran, as well as US tariffs. The committee also aimed to help safeguard the competitiveness of local industries by keeping electricity cost unchanged, he said. Taipower still has some leeway to absorb increases in power generation costs, as the state-run utility company reported profit of NT$72.9 billion (US$2.29 billion) last year, Lai said. If the war ends within three months, the Ministry of Economic Affairs expects there to be little chance that global prices in October would be much higher, he said. The committee is to hold another meeting in September to review the electricity rates. If the war lasts longer than three months, the committee at its next meeting would consider the price trends of global crude oil and liquefied natural gas (LNG) when establishing domestic electricity price hikes, he said. Ahead of yesterday’s meeting, General Chamber of Commerce of the Republic of China chairman Paul Hsu (許舒博) said in a statement that amid the tensions in the Middle East, the government should prioritize ensuring stable supplies of oil and LNG, while avoiding electricity rate hikes. “Inflation is highly correlated to electricity prices, and inflation is difficult to reverse once it goes up,” Hsu said. The government should prioritize price stability and absorb costs within manageable limits, he said. Separately, the Cabinet said it has adopted a series of measures in response to the effects of the Middle East tensions on global energy markets and prices, including keeping household LNG and liquefied petroleum gas (LPG) prices unchanged next month during a price stabilization meeting on Thursday. The Cabinet also froze price hikes for fertilizers, the Cabinet said. Household LNG and LPG prices are closely tied to dining and restaurant costs, the Cabinet said. In addition, the government would closely monitor the supply and prices of key daily necessities such as plastic bags and establish a platform to stabilize the supply of medical consumables to ensure no shortages or disruptions, it said. Additional reporting by CNA ‘UNFRIENDLY’: Changing the nationality listing of Taiwanese residents to ‘China’ goes against EU foreign policy as well as democratic and human rights principles, MOFA said Taiwan yesterday called on Denmark to correct its designation of the nationality of Taiwanese residents as “China” or face retaliatory measures. The Danish government in 2024 changed the nationality of Taiwanese citizens on their residence permits from “Taiwan” to “China.” The decision goes against EU foreign policy and contravenes democratic and human rights principles, Ministry of Foreign Affairs (MOFA) spokesman Hsiao Kuang-wei (蕭光偉) said. Denmark should present a solution acceptable to Taiwan as soon as possible and correct the erroneous designation to preserve the longstanding friendship between the two nations, Hsiao said. The issue could damage Denmark’s image and business reputation in Taiwan, KEY INDUSTRY: The vice premier discussed a plan to create a non-red drone supply chain by next year, which has been allocated a budget of more than NT$7.2 billion The government has budgeted NT$44.2 billion (US$1.38 billion) to cultivate Taiwan’s uncrewed aerial vehicle (UAV) industry over the next five years, which would make the nation a major player in the industry’s democratic supply chain in the Asia-Pacific region, Premier Cho Jung-tai (卓榮泰) said yesterday. Cho made the remarks during a visit to the facilities of Cub Elecparts Inc (為升電裝). Democratic Progressive Party (DPP) Legislator Chen Su-yueh (陳素月) and Chinese Nationalist Party (KMT) Legislator Hsieh Yi-fong (謝依鳳) also participated in the trip. Cub Elecparts has transitioned from the automotive industry to the defense industry, which is the top priority among the nation’s SUFFICIENT: The president said Taiwan has enough oil for next month, with reserves covering more than 100 days and natural gas enough for 12 to 14 days A restart plan for the Guosheng Nuclear Power Plant in New Taipei City’s Wanli District (萬里) and the Ma-anshan Nuclear Power Plant in Pingtung County’s Hengchun Township (恆春) would be submitted to the Nuclear Safety Commission by the end of the month, President William Lai (賴清德) said yesterday, reversing the government’s policy to abolish nuclear energy. On May 17 last year, Taiwan shut down its last nuclear reactor and became the first non-nuclear nation in East Asia, fulfilling the Democratic Progressive Party (DPP) government’s pledge of a “nuclear-free homeland.” Even without nuclear power, Taiwan can maintain a stable electricity supply until 2032, Taiwan climbed to its highest position in global export rankings in more than three decades last year, buoyed by demand linked to artificial intelligence (AI) that lifted shipments of semiconductors and technology products, Ministry of Finance data released yesterday showed. Taiwan accounted for 2.4 percent of global exports last year, or about US$640 billion, ranking 12th worldwide, the data showed. That was up four places from a year earlier and marked the nation’s best ranking since 1994, the ministry said. Taiwan’s share of global exports rose by 0.5 percentage points from the previous year, the largest increase among major economies, reflecting the nation’s