Electricity rates to rise, gas prices to fall from today
Summer electricity rates become effective today. With the exception of households that use 120 kilowatt- hours ( kWh) or less per month, consumers are facing higher rates between June and September.
Utility consumption typically goes up in the summer as people turn on air conditioning to cope with high temperatures. But to cope with the surge in demand, Taiwan Power Company ( Taipower, ) must employ more costly generators.
Utility rates are categorized into summer and non-summer prices, so as to reflect higher cost structure during the summer and to prompt people to conserve energy.
Progressive electric rates are applied between June and September. The more one consumes the higher rate per kWh one has to pay.
Households whose monthly use average 120 kWh or less will be charged NT$1.89 per kWh. The rate stays the same as in nonsummer months.
Homes that consume between 121 and 330 kWh will pay NT$2.73 per kWh. Households that use 331 to 500 kWh, and 500 and 700 kWh, will pay NT$4 and NT$5.15 per kWh, respectively.
Homes that use between 700 and 1,000 kWh will pay NT$ 5.99 per kWh. Heavy users who consume more than 1,001 kWh will pay the highest rate of NT$ 6.71
Lower Costs Compared with Last
The new rate is expected to affect some 9.5 million households. For households that use 330 kWh a month, they have been charged NT$735 up until now, but in the summer, they will have to pay NT$800 a month, a NT$65 difference.
For households that use 500 kWh a month, they are now paying NT$1,296, but their electricity bills will increase by NT$184 to NT$1,480 in the following months.
Nevertheless, Taipower stressed that this year’s rates are lower than last year’s. A 7.34-percent downward rate adjustment was implemented in April, which is ap- plicable to both summer and nonsummer months.
In other words, homes that consume the same amount of energy this year as last year will pay less. For example, a household that uses 500 kWh will realize a saving of NT$20 compared with last year.
Gasoline Prices Fell Further
Meanwhile, gas prices are going down. State-run oil refiner CPC Corp. (CPC, ) announced yesterday that its gasoline prices will be cut NT$0.3 per liter and diesel prices NT$0.4 per liter, effective today.
After the adjustment, CPC will charge NT$ 25.6, NT$ 27.1 and NT$29.1 per liter for its 92-octane, 95-octane and 98-octane unleaded gasoline, respectively, and NT$21.7 per liter for its premium diesel.
The announcement marked the third consecutive downward adjustment. Prices of unleaded gasoline and diesel have dropped NT$0.7 and NT$0.8, respectively, in total.
Privately- run Formosa Petrochemical Corp. ( ) followed suit yesterday, announcing at 5 p. m. that it will cut gasoline and diesel prices by the same amount.
After the cut, its prices are NT$25.4, NT$27 and NT$29.3 per liter for 92-octane, 95-octane and 98-octane unleaded gasoline respectively and NT$23.3 for premium diesel.
Appreciation of the U.S. dollar and oversupply of crude oil have contributed to the decrease in prices, Formosa Petrochemical said.