TAIPEI (TVBS News) — Taiwan prepares for an impending electricity price hike in April, despite Economic Minister J.W. Kuo (郭智輝) denying a rumored 6% increase on Monday (March 25). The adjustment aims to address Taiwan Power Company's (Taipower, 台灣電力公司) long-standing financial losses, which total NT$422.9 billion (approximately US$12.8 billion).
Dachrahn Wu (吳大任), executive director of the Research Center for Taiwan Economic Development (台灣經濟發展研究中心) at National Central University (中央大學), highlighted that the price increase will primarily target residential electricity rates. This focus on household consumption will directly impact the Consumer Price Index (CPI) and affect overall prices across the economy.
Darson Chiu (邱達生), executive director of the Confederation of Asia-Pacific Chambers of Commerce and Industry (CAPCC, 亞太商工總會), warned that higher electricity costs could spur inflation, hindering domestic demand. The timing of the adjustment comes as Taiwan's economy faces multiple external pressures.
Chiu also noted that U.S. President Donald Trump's tariff policies might suppress Taiwan's exports, potentially leading to stagflation, which he described as the worst type of inflation. He stressed that failing to reflect costs promptly when losses occur could worsen the deficit and burden future generations.
According to TaiPower Chairman Tseng Wen-sheng (曾文生), the price adjustment seeks to return electricity rates to a reasonable level. The state utility's substantial financial losses have created pressure for corrective measures despite potential economic repercussions.
The price increase's unavoidable impact on livelihoods and industries prompts businesses and consumers to seek coping strategies. As April approaches, households and companies alike are preparing for higher utility costs amid broader economic uncertainties.
