Press Release

Taiwanese Electricity Act Amendment Drives Industry Liberalization



The “Electricity Act” Amendment Bill is usually deemed as a crucial assessment for the new government. Despite the fact that the draft has passed the preliminary examination in the last mid-December at the Legislative Yuan Economic Commission, four of the 96 provisions, including electricity regulatory authorities, electricity pricing mechanisms, preferential tariffs for children under the age of 12, and timetables for the removal of nuclear waste from Aboriginal areas, haven’t come to a consensus and will be contained and later consulted among political parties. Thus, although the Legislative Yuan is in recess right now, ruling party DDP has listed the “Electricity Act” as imperative bill and will extend the session from 5th to 26th, hence it is hopefully to complete the third reading in this session.



The premier, Chuan Lin, said that the amendment aims at electricity liberalization and he knew that the public is disappointed with the incompletion, but to wage such a war may challenge the government with resistance, doubt and controversy in politics. Therefore, to first deal with green power can rule out many doubts, so they can discuss the liberalization with more social intention and support afterwards.


What is the benefit of the industry liberalization? Lin said that many green power businesses like local governments, township offices or people, will step out and found small electricity company. With incentives like fixed feedback and maintenance, people will feel more likely to set up solar power and may even resell it to Taipower. 


Lin said power in Taiwan is cheap; they will adapt Time of Use Rates in the future. Power is expensive in peak hours, but with solar power, business can sell it to public or resell to Taipower, creating lots of jobs in the meantime.