Amendments to the Electricity Act

  • Date: 2019-01-02

Taiwan has long worked toward creating an environment conducive to the development of green electrical power and ensuring a stable supply of electricity. To diversify sources of energy and allow for fair usage and freedom of choice, the Ministry of Economic Affairs formulated a two-stage plan to amend the Electricity Act. The first step—to promote liberalization of the green energy market and open access to the power grid—was completed on January 11, 2017, when the initial package of draft amendments passed a third and final reading in the Legislature. Second-stage amendments will follow after first-stage operational schemes and mechanisms have matured. The government hopes that step-by-step power industry reform and transformation of the domestic energy model will gradually lead to complete power industry liberalization, while also promoting the development of Taiwan’s green industries.

Areas targeted by the amendments

 Power generation: Implementation will focus on green energy as a priority, with an initial move to allow sales of green energy to users via wheeling, direct supply and renewable energy vendors.

 Power transmission and distribution: Operating the national grid as a state-run enterprise will ensure fair access for all users. Sales: Consumers will have the freedom to choose among public power suppliers, renewable energy producers and renewable energy vendors when purchasing electricity.

 Supervision and management of electricity producers and the electricity market: The competent central government authority will designate a regulatory agency to manage and supervise the market for electrical power, with rates charged by public power vendors subject to regulatory controls. An energy price stabilization fund will also be established to minimize price volatility.

 Preservation of the Taiwan Power Company’s (Taipower) integrity: Following the division of its operations into separate lines of business, Taipower will reorganize as a parent holding company with a subsidiary responsible for power generation and another handling transmission and distribution together with sales.