Electricity Fee Freeze Praised by Industrial Groups for Price Stability
Preface
The Ministry of Economic Affairs held an electricity pricing review meeting today and concluded with a decision to freeze electricity fees, striving for legislative support to fund Taipower's budget. This freeze on electricity rates has received approval and praise from domestic business groups such as the Chinese National Federation of Industries and the National Association of Small & Medium Enterprises. They acknowledge the government's commitment to price stability and urge consensus across political parties to ensure the financial health of Taipower in the future.
Lazy bag
The decision to freeze electricity prices is seen positively by major business groups as a measure to maintain price stability amidst global tariff changes and geopolitical risks.
Main Body
The Chinese National Federation of Industries praised the government’s decision, noting that it took into account international tariff fluctuations and geopolitical risks. They agreed with the government's position on maintaining stable prices. Similarly, Lee Yu-chia, Chairman of the National Association of Small & Medium Enterprises, commented that not increasing electricity prices is a wise policy choice, as any increment could lead to inflation above 2%, resulting in increased domestic price volatility. Considering the sales performance in March, many small and medium enterprises are already facing challenges; an increase in electricity prices would only heighten these difficulties.
Addressing the issue of Taipower's financial losses, the Chinese National Federation of Industries pointed out that Taipower has long undertaken policy tasks, with its operating costs being vulnerable to international energy price alterations. They expressed hope that political consensus can be reached soon to ensure Taipower's financial resilience and sustainable operation.
Lee Yu-chia also raised concerns about how the government plans to handle Taipower’s losses, questioning whether there is an existing strategy or funding in place. He hopes that any subsidies to mitigate losses might be progressively adjusted to prevent a severe impact on businesses should another electricity rate hike occur.
Long-term, the Chinese National Federation of Industries expects the government to provide diverse, stable, and reasonably priced power, especially with the booming AI industry in Taiwan. A stable supply-demand structure is essential for Taiwanese businesses to remain competitive in the global supply chain.
Key Insights Table
| Aspect | Description |
|---|---|
| Stable Pricing | The freeze on electricity fees was praised as it helps in stabilizing domestic prices amid international uncertainties. |
| Taipower's Financial Health | There's anticipation for political consensus to ensure Taipower's financial strength and sustainability. |