Taipei,Sept.18,2012(CENS)--Premier Sean Chen announced yesterday(Sept.17)postponement of second-phase power-rate hike until Oct.1,2013 and establishment of"floating power-rate mechanisma"in the future,as the basis for power-rate adjustment.Chen said that the decision is designed to alleviate the burden on local people,factories,and enterprises and cope with the impact of the third round of quantitative easing policy(QE3)of the U.S.
Business groups affirmed the decision,saying that amid the sluggish economy,the government's acceptance of suggestion from various walks of life to postpone power-rate hike is laudable.Businesses in the fields of cement,steel,textile,and restaurant stressed that the policy can lessen their operating cost.
Rock Hsu,chairman of the Chinese National Federation of Industries,remarked that postponement of power-rate hike is a positive move and its early announcement can remove the uncertainty of industries in their business outlook,while alleviating the concern over stagflation.Chang Ping-chao,chairman of the General Chamber of Commerce,noted that after two months of repeated calls,the government finally understands the difficulty of the business community and complies with the public opinion,saying that the business community should affirm the government's policy.
The five-person task force of the Presidential Office,the Executive Yuan,the Legislative Yuan,and ruling KMT resolved at a luncheon meeting yesterday to postpone the second-phase power hike until the end of the period for summertime power rates,or the end of September,next year.Subsequently,Premier Sean Chen announced postponing the second-phase power rate hike,originally scheduled for implementation on December 10.President Ma Ying-jeou expressed full support of the postponement of power-rate hike and the establishment of a floating power-rate mechanism,based on periodic review of fuel cost.
Premier Chen explained that one major consideration of the policy is the changeful situation of global and domestic economy,especially following the rollout of QE3 policy in the U.S.,which may fuel price hikes of international raw materials,such as gold,minerals,and petroleum.
