Fitch on Taiwan 2026: If Taipower Falters, a 10% Electricity Price Hike—Which Four Industries Will Suffer Most?

Taiwan has avoided the energy rationing measures seen in some Asian countries—such as fuel restrictions or requiring civil servants to work from home—thanks to government fiscal support and cost absorption by Taipower and CPC. However, stable supply comes at a cost. Fitch Ratings warns that Taiwan’s current fuel and electricity prices still do not fully reflect international energy costs, leading to mounting financial pressure on Taipower and CPC. If electricity prices rise another 10%, the petrochemical, textile and fiber, steel, and retail industries will be hit hardest. The petrochemical and textile sectors, already operating at a loss, will face a double squeeze from rising crude oil and electricity costs.

Wu Chi-kai, Deputy Managing Director of Corporate Ratings at Fitch Ratings Asia-Pacific, stated that Taiwan has seen average annual electricity price increases of about 11% from 2022 to 2025, reflecting the government’s tendency to gradually pass on energy cost increases in stages rather than fully and immediately.