The electricity price adjustment plan for the first half of 2016 becomes effective on April 1, 2016. The new price is based on the price resolution made by the Electricity Tariff Examination Council of the Ministry of Economic Affairs (MOEA) on March 15, 2016, which was approved later on March 29, 2016. According to the price adjustment plan, there will be an average reduction of 9.56% for all consumers, and the average price is reduced from NTD 2.8181/kWh to NTD 2.5488/kWh.
The price cut of this time reflects the falling of the global fuel costs. The less the electricity consumption is, the greater percentage the price reduces. For example, the new price for household electricity under 120 kWh per month during summer will drop by 10% to NTD 1.63/kWh, whereas the price will be lowered by less than 9% to NTD 6.13/kWh for those over 1,000 kWh per month.
According to the new pricing scheme, households with 330 kWh per month could save approximately NTD 72 (70% of households consume less than 330 kWh per month). Small businesses with 500 kWh per month could save approximately NTD 138 (47% of small businesses consume less than 500kWh per month).
Energy efficiency improvement, green energy promotion, and energy saving and carbon reduction have been considered in the electricity price formula this time. Furthermore, the goal of promoting renewable energy is also reflected in the price adjustment.
To make the electricity price transparent, the information from the Electricity Tariff Examination Council has been published online on March 25, 2016. A new page "Price Stabilization Mechanism" is added to illustrate the resolution of the Council that Taiwan Power Company's 2015 after-tax earnings of NTD 34.072 billion will be used in "stabilizing the electricity price". More information can be reviewed at
http://web3.moeaboe.gov.tw/ele102/.
The MOEA points out that the electricity price formula is aimed at fulfilling the price rationality and setting the price adjustment mechanism transparently. It is hoped that the formula can acquire the public's recognition, so as to be implemented long and stably. The MOEA will exercise under the new electricity price formula mechanism, and approve the price resolved by the Electricity Tariff Examination Council. According to the Council's recommendations and public opinions, the MOEA is also currently reviewing and developing a modified price formula, which will be submitted to the Legislative Yuan for review and approval soon.
Bureau of Energy Spokesperson:
Ling-Hui Chen, Deputy Director-General
Phone Number: 02-2775-7700
Mobile: 0936-331-761
Email: lhchen@moeaboe.gov.tw
Media Contact: Chih-Wei Wu, Deputy Director
Phone Number: 02-2775-7751
Mobile: 0922-339-410
Email: cwwu@moeaboe.gov.tw
Business Contact: Wen-Hong Chan, Section Chief
Phone Number: 02-2775-7762
Mobile: 0937-070-490
Email: whchan@moeaboe.gov.tw