Taiwan will increase electricity prices by an average of 8.4% from July 1 in response to rising international energy prices, including a 15% increase for large industrial users, the country’s economy ministry said on Monday. with Reuters.
However, prices will not increase for 97% of households, the ministry added, following a review of electricity pricing.
The government is trying to curb price increases in all areas for consumers to help curb the effects of inflation, including energy.
State-owned CPC Corp. keeps gasoline and gas prices artificially low for consumers, despite rising commodity prices globally.
This caused huge losses for both CPC Corp and state-owned electricity company Taipower.
Taipower is expected to see its fuel costs increase by $ 10.13 billion this year, the economy ministry said.
Speaking Monday before the announcement, Economy Minister Wang Mei-hua said Taiwan’s energy prices for consumers are already among the lowest in the world.
Analysts at Taiwan’s Cathay Financial Holding said earlier Monday that a 5-8% rise in electricity prices could add another 0.2-0.4% to the consumer price index this year, although it would only be very mild. impact on overall economic growth.
Source: Capital
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