KMT Proposes Requiring Legislative Yuan Approval Before Implementing Resolutions of MOEA Electricity Price and Rate Review Council

The KMT proposed yesterday (27th) that, given electricity's fundamental role in sustaining livelihoods, fluctuations in electricity prices significantly impact Taiwan's consumer price index and national disposable income. Historically, adjustments to electricity prices have been determined by the Electricity Price and Rate Review Council of MOEA, with resolutions implemented without oversight from the highest public opinion body. This lack of supervision may potentially facilitate administrative power abuse. To address this concern and reflect public will, a draft amendment to Article 49 of the The Electricity Act has been formulated. It stipulates that resolutions from the Electricity Price Review Committee must garner approval from the Legislative Yuan before enactment.

Following an investigation, the Committee has resolved to implement a tariff hike of 11% effective April 2024. This adjustment is anticipated to result in a corresponding 2% increase in the consumer price index. The decision of MOEA to increase electricity prices will amplify the burden on the populace and elevate the index of livelihood hardship. It is evident that adjustments to electricity prices significantly impact the consumer price index and the overall disposable income of the populace. Therefore, such decisions should be entrusted to the Legislative Yuan, which represents the interests of the people, rather than being determined by a select few individuals.

Given the Ing-Wen Tsai administration has raised electricity prices on 4 occasions thus far, namely by 3% in April 2018, 0.4% in July 2022, 11% in April 2023, and 11% in April 2024, resulting in a cumulative increase of 35% over an eight-year period, it is notable that under current legal provisions, adjustments to electricity prices are implemented subsequent to resolutions by the Electricity Price and Rate Review Committee of MOEA. Notably, such resolutions are not subject to oversight by the highest public opinion body.

The original article stipulates that the central competent authority may convene a review meeting involving government agencies, scholars, experts, and pertinent civil society organizations to deliberate and approve matters pertaining to electricity prices, charging rates, and related issues. This proposal seeks to introduce a new resolution to the preceding paragraph, mandating that such resolutions be submitted to the Legislative Yuan for deliberation at least one month prior to implementation.