Electricity prices set to go up

This article was published by the Taiwan Headlines on April 27, 2006. It reports that according to the Ministry of Economic Affairs, electricity prices in Taiwan in 2006 will go up as a result of recent hikes in fuel price, but water fees will not increase. The state-run Taiwan Power Co. Ltd. (Taipower) will announce the increase in electricity costs in May.

According to Taipower, electricity rates have not been raised in Taiwan for 23 years. The recent in fuel prices is likely to result in a loss of NT$25 billion in 2006. Therefore, Taipower plans to raise electricity rates by 10 percent, or NT$0.2 per kilowatt-hour, in order to cover its losses.

However, some lawmakers are warning that successive increases in fuel prices and sugar prices have hurt local consumers, whose salaries have remained stagnant. From 199 to 2005, the average national income in South Korea rose by US$5,124 to US$13,800, while Taiwanese citizens saw their average income increase by only US$483, to US$13,529. This indicates that Koreans were in a better position to endure price hikes, when compared to their Taiwanese counterparts.