Delaying electricity price hikes may curb green energy development,says Executive Yuan Minister Bryan Chuang,Taipei;Jackie Chang,DIGITIMES[Friday 21 September 2012]The Ministry of Economic Affairs in Taiwan has announced a temporary halt to the planned second wave of increases in electricity prices.Industrial firms will save around 10%of their electricity costs thanks to the postponement.However,according to Cyrus CY Chu,Minister of the National Science Council,the price of electricity will affect the development of the green energy industry.Kuan Chung-ming,Minister from the Executive Yuan,noted that higher electricity price are a way to spur new energy policies.
However,in a weakening economy,this theoretically correct policy is hard to implement.From the perspective of economics,Kuan believes that electricity and water fees are too low in Taiwan and the government hopes to increase the price of electricity to guide consumers to conserve energy while introducing new energy policies.
The academic viewpoint is that if the price of electricity is higher,industrial use of energy will be more efficient as waste will be decreased.This is beneficial to the development of the green energy industry.An energy tax can play a crucial role in reducing energy waste.
The Ministry of Finance has been planning mechanisms for a"green tax"since 2009.However,the policy making has been delayed.In 2012,the Ministry of Finance plans to promote its bill for an energy tax to the Legislative Yuan.
Taiwan President Ma Ying-jeou announced on May 1,2012 plans to divide price increase for electricity into three stages to minimize any impact.President Ma added that the government's target and policy cannot change but could be able to accommodate public opinion and adopt milder measures.
The first stage of the price increase occurred on June 10,2012 and the second stage is set to go in effect on December 10,2012.
