Taiwan braces for electricity price hike amid inflation woes

TAIPEI (TVBS News) — Amid unrelieved inflationary pressures, Taiwan is projected to implement an across-the-board increase in electricity prices from April this year, affecting both industrial utility and civilian use below 330 kilowatt hours (kWh).

The price hike is expected to significantly affect daily life and industrial production, particularly high-energy-consuming industries like hot pot restaurants.

Hot pot restaurant operators in reports indicate that a rise in electricity prices will drive up operating costs, potentially resulting in higher food and beverage prices, thus leading to consumer impact.

Taiwan Power Company, as it currently stands, is grappling with hair-raising losses. Last year saw losses amounting to NT$198.5 billion, bringing the consolidated loss up to NT$382.6 billion by year’s end.

If electricity prices surge by 20%, according to the Ministry of Economic Affairs' (MOEA) estimates, the economic growth rate will drop by 0.56%, and consumer prices will inflate by approximately 0.7%.

In contrast, some workers believe that the price adjustment will contribute to sustainable energy development in Taiwan, possibly stimulating the development of energy-saving and emission-reduction industries.