TAIPEI (TVBS News) — Taiwan is grappling with a surge in electricity rates, with an average 11% increase starting in April, posing challenges for businesses and consumers alike.
While the impact may vary for those with lower electricity consumption, industries like food and beverage face mounting expenses. Yeh Heng-ming, owner of a croissant shop, expressed concerns, stating, "When electricity costs rise, it's an additional thousands of NT dollars per month."
Large-scale exhibitions, such as those held at the Taipei World Trade Center, also confront substantial electricity bills, with estimates reaching an additional NT$20,000 to NT$30,000 costs for each event.
In response to the escalating rates, the Taipei City Government is offering subsidies of up to NT$3 million to service industries for upgrading equipment. By adopting new energy-efficient technology, businesses can mitigate monthly electricity consumption.
For example, stalls in Nanmen Market are embracing variable frequency refrigeration units, resulting in annual savings of 39,000-kilowatt hours and about NT$140,000 in electricity costs.
Despite these efforts, Taiwan Power Company grapples with a staggering deficit, reaching nearly NT$400 billion by the end of 2023. The recent price hike aims to generate NT$62.5 billion in revenue, but experts caution that it offers only temporary relief.
Liang Chi-yuan, a researcher at the Institute of Economics, emphasized the need for a fundamental shift in energy policy to curb further increases in electricity prices. “The third nuclear power plant will also be shut down in 2025, so the costs will be continuously increased. Unless the energy policy is changed, electricity prices will continue to rise,” said Liang.
As summer approaches, concerns mount over rising electricity bills. Finding a sustainable solution to Taiwan Power Company's deficit without overburdening the public requires strategic and decisive action from the government.