Taipower's Losses Put Pressure on Electricity Prices? Kung Ming-hsin Emphasizes民生 Protection as September Rate Review Nears

Economic Affairs Minister Kung Ming-hsin attended the Legislative Yuan's Economic Committee today (10th) and responded to hot topics including concerns over Taisugar's oil products and the upcoming September electricity rate review. Prior to the session, he emphasized that the final decision on whether electricity rates will be adjusted rests with the review committee. The Ministry of Economic Affairs remains committed to prioritizing民生 protection and price stability, and will provide more evidence for committee members to consider. The ministry is also actively seeking additional budget subsidies to offset Taipower's accumulated losses, and clarified that electricity pricing considerations are entirely unrelated to elections.

The electricity price issue has recently become a focal point of public attention. With the September electricity rate review approaching, the market is closely watching whether prices will rise again. If an adjustment is made, it could take effect as early as October 1. Kung noted that the rate review mechanism has long been established, and the final outcome must be decided by the committee composed of experts and representatives. However, from the government's standpoint as the overseeing authority, the primary goal remains stabilizing prices and meeting broad民生 needs.

To alleviate Taipower's financial burden and prevent sharp electricity price fluctuations from impacting household consumption and business operations, the Ministry is actively requesting additional budget allocations from the Executive Yuan. The aim is to use subsidies to mitigate Taipower's massive accumulated losses. Kung emphasized that comprehensive information on Taipower's operations and the broader impact on prices will be submitted to the review committee, enabling members to make well-informed and appropriate decisions. These policy considerations are driven solely by the need for economic and民生 stability, not by election-related factors as some have speculated.

In addition, Kung addressed food safety concerns regarding Taisugar's lard. Taisugar has implemented a complete standard operating procedure and conducted 12 internal safety inspections. Combined with 18 inspections by central and local governments, all 30 tests confirmed compliance with national safety standards. Related products have been proactively removed from shelves and will resume normal sales pending administrative confirmation. Going forward, Taisugar plans to adjust its procurement strategy by ceasing domestic purchases of lard and switching to direct imports from overseas, further enhancing the safety and stability of its oil supply.