The Ministry of Economic Affairs (MOEA) convened the 3rd meeting of the Electricity Tariff Examination Council (the Council) on November 19, 2024. During the meeting, the Council applied "The Calculation Formula for Electricity Transmission and Distribution Tariff (the Formula)" to review costs associated with electricity transmission and distribution enterprises. Based on their review, the Council finalized the "electricity transmission and distribution tariffs" for 2025. These tariffs primarily cover power grid usage fees for green energy wheeling and direct supply by renewable energy enterprises, as well as self-use power generation equipment transmitting power for self-use. Electricity tariffs for the general public are unaffected. The Council also reviewed grid connection fees and examined the industrial classification adjustments for electricity tariffs implemented in October 2024.
The MOEA explained that, in accordance with the Formula, the "tariffs for electricity transmission and distribution enterprises" include: the average rate of ancillary service tariff, which reflects the adoption of energy storage systems, pumped-storage hydropower, and other quick-start and quick-stop resources to assist in stabilizing the power system; the average rate of electricity dispatch, which reflects the transmission loss incurred during the process; and the average rates of wheeling transmission and distribution, which reflect the shared costs of power lines and substations used during the electricity transmission. In recent years, Taiwan Power Company (Taipower) has increased investments to strengthen power grid resilience, leading to higher depreciation and maintenance costs. These four tariffs are reviewed and adjusted annually. During the Council meeting, members thoroughly discussed the cost data submitted by Taipower and resolved to adjust the total average rate from 0.7210 NTD/kWh to 0.8465 NTD/kWh. For the direct and wheeling supply of renewable energy with zero carbon emission, the total average rate is set at 0.2658 NTD/kWh. These rates will take effect from January 1 to December 31, 2025.
Regarding connection rates from 2025 to 2027, the MOEA stated that the majority of such tariffs are one-time charges for newly-built residences applying for electricity, or industry applying for higher power usage when expanding production capacity, thus, in order to reduce impacts on people's livelihoods, the Meter Rate Lighting Service and Low Voltage Power Service users' rates will remain unchanged, while the rates for High Voltage and Extra High Voltage users will be increased by 45%. This will result in an average increase of 24%. Users that receive impact will primarily be newly-built factories. The connection rates adjustments will come into effect on January 1st, 2025, and the costs not reflected will be discussed in the Council's next annual meeting.
The MOEA stated that, for the October 2024 industrial classification adjustments for electricity tariffs, this meeting of the Council considered people's livelihoods, and public interests, and thus determined the rate freeze on electricity tariffs increases for hospitals, clinics, and the hospitality industry in Hualien. The Council considered factors such as the relevance to the hospital and clinic industry and the consistency of the Hualien-Taitung region, and resolved to Electricity tariffs freeze for the Other Healthcare Industry (industry code 869) and that for the hospitality industry in Taitung. The rate freezes apply retroactively from October 16, 2024, onwards.
For full information disclosure, the MOEA will publish all the information discussed during the meeting on the website within 2 weeks from Nov. 19, including the meeting minutes, discussion materials, and information of Taipower's costs. Starting from December 3rd, the public can access the Electricity Tariff website (https://www3.moeaea.gov.tw/ele102/; Chinese only) from the MOEA or Energy Administration's main websites, to learn more about the information on the Council meeting and Taipower's costs.
