The Kuomintang and Taiwan People's Party's proposal to remove the budget for Taipower's subsidies has ignited a political battle: The Democratic Progressive Party is concerned about rising electricity prices, while the Taiwan People's Party criticizes the energy policy for its mistakes.
The Executive Yuan proposed a special bill amounting to 410 billion NT dollars, and the Kuomintang and the Taiwan People's Party proposed to remove the 100 billion NT dollar allocation for Taipower, sparking a debate between the ruling and opposition parties. The Democratic Progressive Party criticized this move, claiming it would lead to an increase in electricity prices, affecting small and medium-sized enterprises and the general economy, and accused the opposition of broadly distributing cash, which does not contribute to industrial transformation. The Taiwan People's Party countered, arguing that the pressure on electricity prices is due to flawed energy policies, and advocated for reforms in nuclear and green energy policies to resolve Taipower's deficit problems.
Key Updates
05/07 13:02
The Kuomintang and Taiwan People's Party's proposal to remove the budget for Taipower's subsidies has ignited a political battle: The Democratic Progressive Party is concerned about rising electricity prices, while the Taiwan People's Party criticizes the energy policy for its mistakes.
The Executive Yuan proposed a special bill amounting to 410 billion NT dollars, and the Kuomintang and the Taiwan People's Party proposed to remove the 100 billion NT dollar allocation for Taipower, sparking a debate between the ruling and opposition parties. The Democratic Progressive Party criticized this move, claiming it would lead to an increase in electricity prices, affecting small and medium-sized enterprises and the general economy, and accused the opposition of broadly distributing cash, which does not contribute to industrial transformation. The Taiwan People's Party countered, arguing that the pressure on electricity prices is due to flawed energy policies, and advocated for reforms in nuclear and green energy policies to resolve Taipower's deficit problems.
Blue and White Coalition's Special Ordinance Released: Elimination of Taipower Funding, Proposing Universal Cash Payouts
On April 24, the Executive Yuan approved a draft of a special ordinance totaling NT$410 billion, aimed at mitigating the impact of the U.S. reciprocal tariff policy on Taiwan's industries. The content includes NT$100 billion in funding for Taipower, NT$150 billion for national security resilience, and various support measures for industries, employment, and disadvantaged groups.
However, the Kuomintang (KMT) and the Taiwan People's Party (TPP) voiced their dissatisfaction with this proposal and proposed their own versions of the special ordinance draft. The KMT's version totals NT$390 billion, eliminating the Taipower funding and national security resilience budget, focusing instead on distributing NT$10,000 in cash to everyone. The TPP's version advocates for a universal cash payout of NT$6,000, also removing the Taipower funding budget.
KMT legislator Ko Chih-en pointed out that although some items in the Executive Yuan's version have received support from the blue camp, such as industry subsidies, higher education talent cultivation, and employment stability, she expressed skepticism about the Taipower funding arrangement. She emphasized that Taipower's annual losses cannot be resolved by subsidies alone and that reforms should start with energy policy and electricity pricing mechanisms.
DPP Strongly Opposes: Removing Subsidies Seen as Intent to Raise Electricity Prices
In response to the blue and white parties' proposal to remove the Taipower funding, DPP spokespersons Wu Tseng and Han Ying held a press conference on May 7, strongly criticizing the opposition parties for "deliberately causing electricity prices to rise," which would further burden small and medium-sized businesses and the general economy.
Wu Tseng stated that the Executive Yuan's proposal to fund Taipower with NT$100 billion aims to stabilize the power supply and electricity prices, preventing industries from facing the dual impact of international tariff pressure and rising electricity prices. He pointed out that the blue and white versions' removal of this budget is equivalent to allowing Taipower to increase electricity prices, which is detrimental to both industries and the public.
Han Ying added that Taipower's recent losses are mainly due to the spike in international fuel prices caused by the Russia-Ukraine conflict. The government's funding is to absorb costs and stabilize prices. She criticized the opposition for spreading misinformation and misleading the public into thinking that the government's annual NT$420 billion funding to Taipower is solely to suppress electricity prices, when in fact only about NT$50 billion is to cover losses, with the rest being for capital increase purposes.
TPP Counterattacks: Wrong Energy Policy is the Root Cause
In response to the DPP's criticism, TPP deputy caucus leader Chang Chi-kai responded on the same day, accusing the DPP of "reversing cause and effect, misleading the public," emphasizing that the real pressure on electricity prices is due to the government's long-term erroneous energy policy.
Chang Chi-kai pointed out that the government has subsidized Taipower over NT$300 billion in the past three years without achieving substantial improvement, and Taipower's debt has instead exceeded NT$2.6 trillion, with annual interest reaching NT$32.1 billion. He criticized the government for indiscriminately subsidizing, which is akin to a "bottomless pit," only leading to more losses.
He further advocated for extending the life of nuclear power, rationalizing green electricity prices, and investigating green energy-related corruption cases to truly help Taipower out of its predicament. He emphasized, "Reform is the solution to stop the financial drain, unconditional subsidies will only lead to price increases."
Executive Yuan and Opposition Drafts to be Reviewed Together
Currently, the Executive Yuan's version and the blue and white parties' versions of the special ordinance draft have been scheduled for review in the Legislative Yuan's procedural committee, and are expected to be reviewed together. KMT caucus secretary-general Wang Hung-wei remarked that the blue camp's version focuses more on "expanding domestic demand and universal cash payouts" to directly stimulate consumption and boost the economy.
The DPP continues to urge cross-party support for the Executive Yuan's version, emphasizing that funding Taipower is a common demand from the industry, not merely a fiscal expenditure. Minister of Economic Affairs Kuo Tzu-hui recently stated that the NT$100 billion funding for Taipower is the result of the industry's "request" to the President and the Premier, aimed at avoiding the impact of electricity price increases on export competitiveness.
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