Committee may leave electricity rates unchanged for sixth time in a row: analyst (2021/02/23)
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  • 英文 English 
    Committee may leave electricity rates unchanged for sixth time in a row: analyst (2021/02/23)

    International fuel prices are on the rise. Could that have an impact on your power bill? Analysts say the government is under pressure to raise power rates at its twice-a-year review meeting next month. But there is also pressure to keep the rates unchanged, to give a breather to businesses hurt by the pandemic.

    As the weather warms up, air cons go on, and attention starts to turn to power prices. In mid-March, the economic ministry’s Electricity Tariff Review Committee will convene once again, to decide whether to lift rates.

    Darson Chiu
    Taiwan Institute of Economic Research
    Its considerations will include fuel costs and shipping fees. Right now we can see that they are both on the rise. But another factor is the impact of the pandemic. Last year, the industries that suffered most in Taiwan were services and traditional manufacturing. The committee may consider giving these industries room for recuperation and revival this year, by leaving rates unchanged.

    The expert says that with traditional manufacturing and the services sector still grappling with the pandemic, and with Taipower having made NT$22.7 billion last year, the committee may leave electricity rates unchanged for the sixth time in a row. However, international crude oil prices are on an upward trend amid a severe snowstorm in the U.S. state of Texas. So far this year, Brent crude prices have grown by more than 20%. U.S. financial services company Goldman Sachs says crude will continue rallying this year as global demand recovers at a faster rate than oil production. That could put pressure on Taiwan to raise electricity rates.

    Wang Mei-hua (Feb. 17)
    Minister of economic affairs
    You have to look at the longer-term trends to decide whether to raise the rates. On that front, we have professional assessments.

    Asked about the future of power prices, economics minister Wang Mei-hua declined to give a forecast, saying there was still a month to go before the committee convenes. With global crude prices swinging, only time will tell if electricity rates will rise in April.

    中文 Chinese  
    電價連5凍面臨上漲 專家分析可能連6凍



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