TAIPEI (Taiwan News) — Taipower is expected to propose higher electricity rates to the government’s Electricity Price Review Committee this week, with a 5% increase for industrial users and a 10% hike for households and small businesses.

The state-run utility said the adjustment is necessary to offset accumulated losses of NT$422.9 billion (US$14.97 billion). The Legislative Yuan’s decision to cut two NT$100 billion subsidy projects, along with other subsidies, has further increased pressure on Taipower to raise rates, Liberty Times reported.

Economics Minister Kuo Jyh-huei (郭智輝) attended a meeting on Friday during which the proposal details were presented. The rate hikes are expected to affect 13.4 million households, 910,000 small businesses, and 330,000 industrial users. The average rate increase is projected at 6%, aimed at preventing Taipower’s annual operating losses from widening.

Kuo noted that electricity rates have been frozen for years for around nine million households, with each unit of power sold well below cost. According to Taipower, the proposed increases could generate NT$15 billion in revenue, while an additional NT$10 billion could be raised by consolidating preferential rate tiers.

The utility added that previous rate hikes mainly affected industrial users, but this time, households and small businesses will bear the brunt of the increase. While Taiwan’s industrial electricity rate currently stands at NT$4.27 per unit, lower than South Korea’s NT$4.98, there is still room for adjustment, although industrial rates have already been raised four times over the past three years.