TAIPEI (TVBS News) — Taiwan Railways Corporation (台鐵) announced on Sunday (Oct. 6) that it will recalculate fare adjustments next week due to increased costs from Taiwan Power Company's (台電) electricity price hike, which added NT$200 million to NT$300 million in expenses. The corporation plans to present the proposed fare changes to its board on Oct. 22.
Taiwan Power Company will implement the new electricity rates starting Oct. 16. Taiwan Railways has not adjusted its fares for 29 years, despite scholars and experts urging a return to a reasonable pricing mechanism. After completing its corporatization earlier this year, the company has continued to explore fare adjustments.
Based on Taiwan Railways' current basic rate of NT$1.46 per person per kilometer, including tax, the new fare calculated with a 3% return on investment would increase to NT$1.98 per kilometer, averaging a 35.6% hike. The corporation stated that the fare adjustment proposal remains similar to previous versions but emphasizes improved communication with the public.
Taiwan High Speed Rail (台灣高鐵) also faces pressure from the electricity price increase. The company awaits the official announcement of the new rates to assess the impact on operational costs further. Taiwan High Speed Rail noted that any fare adjustments would comply with contractual obligations, considering both internal operational costs and external environmental factors, before being presented to its board for a decision.
Stay tuned for further developments as both railway companies navigate the challenges posed by rising electricity costs and fare adjustments.
