Taiwan freezes electricity rates to help price stability, industrial competitiveness
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The Taiwanese government has been trying to contain price rises for consumers to help limit the impact of rising international energy prices.
PHOTO: EPA
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TAIPEI - Taiwan will not raise electricity prices for now despite increased energy prices due to the war in the Middle East, to help maintain price stability and industrial competitiveness, the economy ministry said on March 27.
The government has been trying to contain price rises across the board for consumers to help limit the impact of rising international energy prices due to the war in the Middle East, including heavily subsidising energy.
“In light of the risks arising from escalating conflict in the Middle East and changes in international tariffs, and in order to help stabilise consumer prices and maintain industrial competitiveness, the committee decided not to adjust electricity rates this time,” the ministry said in a statement.
Taiwan, which has kept inflation below the central bank’s 2 per cent “warning line” for the last 10 months in a row, is a major producer of the advanced semiconductors used to power the megatrend towards artificial intelligence.
Taiwan’s central bank said in a report to lawmakers on March 27 that the war’s impact on the economy depends on its duration, intensity and the geographical scope of the fighting, but it also said it generally expected stable growth in 2026.
The ministry’s electricity price review committee meets at the end of every March and September to discuss rates for state-owned utility Taipower.
Taiwan has had to look for alternative sources, including the United States, for crude and LNG since the war began, given its previous heavy dependence on the Middle East.
Taiwan is also reconsidering use of nuclear power, having closed the last operating station, located in the far south of the island, in 2025.
Taipower said on March 27 in a separate statement that it had sent a proposal to reopen that plant to the Nuclear Safety Commission.
But it added that even if the plan is approved the plant would not immediately come back online, as the safety inspections could take up to two years. REUTERS
