Chip Hub Taiwan Keeps Power Prices Unchanged Despite War

Article content(Bloomberg) — Taiwan, home to some of the world’s biggest chipmakers, will keep its electricity rates unchanged for now to mitigate inflationary pressures from the war in the Middle East.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentTaiwan’s Economics Ministry considered geopolitical risks and volatile global energy prices while also seeking to stabilize inflation and support industrial competitiveness, it said in a statement Friday, following a review of pricing. The island is confident there will be no shortage of power in the short term, a ministry official said in a briefing.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe decision was made even though the formula used to review prices indicated a 1.8% rise would be justified based on the recent surge in global energy costs, the official said. The ministry’s review panel recommended continued monitoring of fuel price trends, and urged state utility Taiwan Power Co., known as Taipower, to improve fuel procurement to limit pricing pressures.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentTaiwan Semiconductor Manufacturing Company, the sole chipmaker for Nvidia Corp.’s advanced AI accelerators and Apple Inc.’s iPhone processors, is the biggest industrial consumer on the island. In Taiwan, the technology sector alone accounts for one-quarter of the economy’s total power consumption, according to Bloomberg Intelligence. Article contentTaiwan effectively subsidizes power prices through Taipower, which is under severe financial pressure after accumulating NT$357 billion ($11 billion) of losses by the end of January. If the US and Israeli war on Iran drags on, restricting energy exports from the Middle East, there will be more pressure for the government to increase power rates for businesses and households.Article contentThe average power rate will remain at NT$3.7823 per kilowatt hour. The island raised power prices significantly in 2024, and in October lifted residential power prices by an average 0.71%. Article contentTaiwan officials have said that the island has secured 20 liquefied natural gas cargoes for June, paying an additional NT$20 billion after prices surged.Article content(Adds rationale in second and third paragraphs, average power price in sixth.)Article contentTrending Meet the Canadian e-bike maker who is redefining the factory floor Electric Vehicles Iran oil revenue soars as it's the only exporter out of Hormuz Oil & Gas Markets could be making the wrong call on interest rates Investor Quebec demands Air Canada’s CEO resignation in 92 to 0 vote Airlines LNG Canada signs key pipeline agreement required for phase two expansion Energy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Meet the Canadian e-bike maker who is redefining the factory floor Electric Vehicles Iran oil revenue soars as it's the only exporter out of Hormuz Oil & Gas Markets could be making the wrong call on interest rates Investor Quebec demands Air Canada’s CEO resignation in 92 to 0 vote Airlines LNG Canada signs key pipeline agreement required for phase two expansion Energy