International oil prices have soared, driving energy costs to remain high. Next week, Taiwan's economic department will convene an electricity price review committee to formulate new electricity prices starting in April. However, with the variables of the Russia-Ukraine war, oil prices have skyrocketed, leaving the question of whether the electricity price will continue to rise at this time. To reflect the cost of electricity or take into account the freezing inflation rate, the economic sector is in the dilemma of father and son riding a donkey, which is a headache.
Since the second half of last year, the global pneumonia epidemic has gradually slowed down, and the international economy has begun to recover. Oil prices have rebounded to between 70 and 80 US dollars per barrel. However, as soon as the Russia-Ukraine war started, global oil prices skyrocketed. Last week alone A barrel of crude oil rose by US$13.75, and the oil price on the island increased by 0.3 yuan per liter. However, behind the scenes, Taiwan PetroChina absorbed 5.0 to 6.6 yuan per liter, reducing the burden on car owners.
In order to reduce procurement costs, Taipower and Taiwan Petroleum Corporation mostly adopt long-term contracts when purchasing coal and natural gas . The purchase price is determined based on the average oil price in the past three months, so they can withstand short-term price fluctuations to a certain extent. However, many research institutions believe that oil prices will not return to a stable state until the second half of this year, adding to the pressure on electricity prices to rise this year.
In the past, the economic sector has frozen electricity prices seven times in a row in order to stabilize prices. This time, in the face of the menacing rise in oil prices, although there are electricity price stabilization funds to withstand the temporary increase, there are still many uncertainties in the future. There were local elections at the end of last year, and since prices were rarely raised before elections in previous years, the first half of this year became the only time to adjust prices.
However, the island’s domestic demand market was severely damaged by the epidemic last year, and many industries are still recovering from the injuries, so they do not want the Taiwanese authorities to raise electricity prices at this time. However, in the export industry, Changhong takes orders and produces continuously 24 hours a day. Even if the electricity consumption exceeds the contracted capacity, it must be shipped quickly, causing the same situation among electricity users.
Since last year, many countries around the world have begun to require net-zero emissions, and they must achieve carbon neutrality by 2050. Therefore, many carbon reduction measures must be taken now. Even in the future, carbon inventory will also include indirect emissions such as electricity consumption, carbon reduction There is almost a consensus among all walks of life that if low electricity prices continue to be maintained, it may distort energy prices and become a shield for entering low carbon.
"Price versus quantity" is the best policy tool to urge all parties to review energy conservation. Enterprises will inevitably reduce energy consumption in order to reduce electricity consumption. Although adjusting electricity prices will cause a rebound in all walks of life, in order to take into account the multiple goals of fairness in electricity consumption, long-term healthy energy transformation and carbon reduction, the economic department should have an answer in its mind.
