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The electricity price resolution is to "freeze the increase"! Taipower's massive losses remain unresolved, and stabilizing prices has become the top priority.
Taiwan's electricity price increase has stopped, and many people are slightly relieved by the high people's livelihood prices. (Synopsis: Will electricity bills go up? Taipower's three scripts exposed, Minister of Economy Guo Zhihui: Strive for 100 billion subsidies from the Legislative Yuan, restart nuclear power requires a national consensus) (Background supplement: Trump's support for "nuclear energy development AI", what impact may it have on Bitcoin mining? At a time when electricity prices are widely expected to usher in a new wave of increases to reflect the pressure of international fuel costs and Taipower's huge losses, the electricity price rate review meeting held by the Ministry of Economic Affairs today (28) made an unexpected decision - a full freeze! Whether it is people's livelihood electricity or industrial electricity, the current electricity price remains unchanged. Considering price inflation, the deliberation committee members decided not to adjust the electricity price this time, and even asked the Ministry of Economic Affairs to fully win the support of the Legislative Yuan and broadcast the Taiwan Power subsidy budget to make up for the gap. As soon as this news came out, although the people temporarily breathed a sigh of relief, it also cast deeper variables for Taipower, which is on the verge of a financial cliff, and Taiwan's future energy policy. What is the priority of price stability? Before the meeting, the atmosphere was unusually tense. Taipower's accumulated losses have exceeded the 400 billion yuan mark, and although international fuel prices fluctuate, they are still at a high end overall, and the pressure on power generation costs is heavy. Previous energy experts, business groups, and even some government officials have released the message that "electricity prices have to rise", and it is expected that the average increase may fall between 10% and 15%, especially industrial electricity users will be the main adjustment targets. However, the end result is "freezing up". Although the Ministry of Economic Affairs did not elaborate on the specific considerations of the freezing increase in its post-meeting press release, it revealed between the lines that stabilizing current prices and avoiding shocks to the economy in the post-pandemic recovery have become the primary scales of decision-making. Although the annual growth rate of Taiwan's consumer price index (CPI) has fallen slightly, the core inflationary pressure is still there, and if the electricity price rises sharply at this time, it will inevitably trigger a chain effect of rising costs of various industries and aggravate the burden of people's lives, which is obviously a situation that the ruling team is trying to avoid. Taipower pressure cooker In the past two years, although the Taiwan authorities have injected more than 100 billion yuan into Taipower through capital increases and special budget subsidies, it is only a drop in the bucket compared with its loss rate. This freezing decision undoubtedly brought Taipower's operating pressure cooker to the brink of critical point. Insiders are worried that the lack of a stable source of revenue will not only affect daily operations and maintenance, but also may affect future investment in power infrastructure, including renewable energy development and grid resilience plans, which may delay the realization of the national energy transition goals. The crux of the matter is who will ultimately pay for this cost that has not been recovered due to freezing inflation? Is it accumulated into the future, forming a greater pressure on electricity prices? Or does it require the government to continue to allocate huge budget subsidies, which is equivalent to "paying for the whole people"? This is not only a financial issue, but also involves the fairness of resource allocation and government fiscal discipline. Related Stories Bitcoin Security Myth Busted? Researcher: "$10 billion + 10GW of electricity" can launch a 51% attack, and large institutions can easily short and profit Europe's largest power company ENEL will "tokenize solar panels" to buy coins to offset electricity bills, RWA new application 〈Electricity price decision "frozen"! Taipower's huge losses are unsolved, and price stability has become the primary consideration" This article was first published in BlockTempo "Dynamic Trend in Dynamic Area - The Most Influential Blockchain News Media".