TAIPEI, March 28 (Reuters) - Taiwan will not raise electricity prices for now given global uncertainty over the impact of trade tariffs and geopolitical risks, but the government will seek parliamentary approval for funding to stem nearly $13 billion in losses for the state-run power firm.
The government has been trying to contain price rises across the board for consumers to help limit the impact of inflation, including heavily subsidising energy, though it did raise power prices in September and April of last year.
Taiwan's economy ministry said on Friday after a meeting of its electricity price review committee that its members had "cautiously looked at the impact of electricity bills on prices, and resolved that electricity prices would not be adjusted this time around".
"The meeting considered international tariff changes and geopolitical risks, which may trigger potential concerns about international economic and price fluctuations," the ministry said, explaining the freeze on electricity prices.
Instead, the ministry said it would seek parliamentary support for extra funds for state-run power utility Taipower to ensure the stability of its "financial structure".
Taiwan's state refiner, CPC Corp, has been keeping gasoline and natural gas prices artificially low for consumers despite prices of the raw materials rising globally due to the impact of the Russian invasion of Ukraine.
That has generated large losses for both CPC Corp and state-run power utility Taipower, the latter of which has reported accumulated losses of T$422.9 billion ($12.77 billion) as of the end of last year, according to the economy ministry.
Taiwan's central bank this month held fast on its policy rate given lingering concerns about inflation, though the island's inflation rate has never been as high as most Western economies. February's consumer price index rose just 1.58%.
Taiwan's government has repeatedly said that Taiwan's energy prices for consumers are already among the lowest in the world.
($1 = 33.1230 Taiwan dollars)
Reporting by Jeanny Kao and Ben Blanchard; Editing by Kim Coghill
Source: Reuters