Taiwan's "Ministry of Economic Affairs" electricity price review meeting recently decided not to raise electricity prices. Since the new version of the electricity price formula was put on the road in 2017, this is the third consecutive freeze increase. This frozen increase will last until the end of March next year. In other words, no matter what earth-shaking changes occur in the international energy market before next year's election, Taiwan's electricity prices will remain unchanged.
Underneath the “three consecutive freezes” on electricity prices lies the huge losses of Taipower , the collapse of the electricity price adjustment mechanism, and the selfishness of the “ruling party” to use public funds to fight for elections.
The "Tsai Administration" announced an increase in electricity prices in March last year, which caused widespread public dissatisfaction. The reason is that when Tsai Ing-wen was campaigning in 2016, she promised that the energy transition would not cause an increase in electricity prices; but the vote was rejected within two years, and the voters of course changed their attitude. Since then, electricity prices on the island have been frozen and raised three times in a row, two of which happened to be before the island's general election. It can be seen that preventing electricity price increases from causing public dissatisfaction and thus affecting the election situation is the real consideration for freezing the increase.
Taiwan relies on imports for more than 90% of its energy, and the main factor affecting electricity prices is international energy prices. Taiwan's "Ministry of Economic Affairs" should have objectively assessed international energy trends, reasonably regulated electricity prices, and prevented the benefits of subsidies from being concentrated on a few people or companies. However, judging from the recent holding of electricity price and rate review meetings, this meeting has become a rubber stamp. Today's electricity price adjustment decisions do not depend on data analysis, but on the arbitrary manipulation of Taiwan's "Ministry of Economic Affairs".
When Taiwan's "Ministry of Economic Affairs" reviewed electricity prices in March this year, due to rising international fuel prices, Taipower's original electricity price increase was 6.48%; if the upper limit of the increase in the electricity price formula was followed, it should have increased by at least 3%. However, Taiwan's "Ministry of Economic Affairs" took a strong lead in decision-making at that time, saying that international oil prices were "about to fall," leading electricity prices to continue to freeze. At that time, Taiwan's "Ministry of Economic Affairs" also vowed that based on the trend of international oil prices, there would be no pressure to increase electricity prices by October this year.
However, the predictions made by Taiwan’s “Ministry of Economic Affairs” are just words. After that meeting, international oil prices rose instead of falling, and it took two full months before they stabilized. Affected by the surge in fuel costs, Taipower's cumulative losses in the first eight months of this year reached NT$20.2 billion (the same below), a nearly 60% increase from the same period last year. In the middle of this month, Saudi Arabia's oil refineries were attacked and production capacity was greatly reduced. International crude oil prices once soared by 18%. Although they fell slightly last week, they still rose by 6%. Under such circumstances, Taiwan's "Ministry of Economic Affairs" actually used "falling international energy prices" as the reason for the freeze in electricity prices. It is completely deceiving itself. Taipower's losses continue to expand, and Taiwan's "Ministry of Economic Affairs" is still wishfully optimistic about the trend of energy prices. There is no other better explanation except to prevent energy issues from becoming a stumbling block for Tsai Ing-wen's re-election.
When the DPP was in opposition, it often criticized the KMT for adjusting electricity prices in a disorderly manner. Now it seems that the DPP itself is the biggest culprit in destroying the electricity price system. Before Chen Shui-bian was about to leave office in 2008, he resorted to freezing oil and electricity prices in order to help the Democratic Progressive Party boost its electoral support. However, judging from the election results, the freeze in oil and electricity prices could no longer help the DPP regain the popular support it had lost due to the Bian family's corruption, and the DPP ended in a resounding defeat. However, the bitter consequences of the freeze in oil and electricity prices were left to his successor Ma Ying-jeou to clean up the aftermath, which was then transferred to the public grievances of the "Ma government". The Democratic Progressive Party was the initiator of the oil and electricity price chaos and never reflected on it. However, Ma Ying-jeou rationalized oil and electricity prices, but was vigorously attacked by the culprit, the Democratic Progressive Party.
Looking again, the electricity price stabilization fund was originally used during emergencies, but the "Tsai government" kept getting involved. Now the fund has dropped sharply from 80 billion to only more than 40 billion. After electricity prices are frozen for three consecutive times, the stabilization fund will surely experience greater blood loss. The stabilization fund was originally used to stabilize electricity prices, but now it is used to stabilize Tsai Ing-wen's election.
In order to support Tsai Ing-wen's re-election, all "ministries" have tried their best to deliver good news. As far as Taiwan's "Ministry of Economic Affairs" is concerned, it recently issued nearly 600 million yuan in " night market coupons" in the name of revitalizing tourism on the island. The problem is that the sluggish tourism industry on the island is mainly due to the lack of tourists from mainland China, and tourists from Southeast Asia cannot fill this gap. Relying on subsidizing night markets with money is actually a drop in the bucket in revitalizing tourism, and is just a solution to a headache. Take Pingtung County as an example. There are no night markets where vouchers can be used. Even the county magistrate Pan Meng'an criticized the night market voucher policy for being rough.It can be seen that the policies of Taiwan's "Ministry of Economic Affairs" are far from the hearts of the people.
From subsidizing taxi replacements and issuing night market vouchers to freezing electricity prices and long-term care subsidies, various “ministries” are busy launching various free lunches for voters to enjoy. The "Tsai Administration" is convinced that the "opposition parties" are weak, and this kind of money-spending policy that is generous to the people will continue to appear before the election.
But there is no such thing as a free lunch. The "Tsai Administration" was in a hurry to serve food before the election, but after the election, the Taiwanese people were waiting to pay the price.
This article was originally published in Taiwan's "United Daily News".
