TAIPEI (Taiwan News) — The Ministry of Economic Affairs said Friday it will implement a temporary freeze on electricity prices. 

The committee tasked with reviewing electricity rates met for about two hours before announcing the decision. The MOEA said no rate hikes will be approved now due to concern over the impact of international tariffs and other geopolitical risks, CNA reported. 

The decision comes after reports that Taipower was considering tripling the rate of electricity for empty residences. Other reports speculated that average rates might increase as much as 10% in April.  

Taipower is now expected to lose an estimated NT$50 billion (US$1.5 billion) this year as a result of the decision, bringing the company’s cumulative losses to NT$472.9 billion (US$13 billion), PTS reported. MOEA Deputy Director Lai Chien-hsin (賴建信) said steep increases in the cost of fuel imports between 2022 and 2024 have contributed significantly to Taipower’s financial woes. 

The ministry said the government’s decision to absorb the costs was made to safeguard people’s livelihoods and mitigate inflation. However, the MOEA has also ordered Taipower to review operations and reduce expenses, plus improve fuel procurement strategies. 

The MOEA said it will also try to work with the opposition-controlled Legislative Yuan to secure funds for Taipower as it seeks to stabilize its operations and finances. In January, the KMT and TPP parties passed a budget that drastically reduced government funding and cut subsidies to Taipower by NT$100 billion. 

The ministry will make public online the full minutes of Friday’s meeting, along with Taipower’s recent financial data, from April 11. The ministry said it would assist Taipower to stabilize energy prices and to ensure the country’s energy needs are met, per CNA.