Promotion of Reasonable Tariff Schedules
The Goals of Tariff Schedules Design
Based on the following 3 goals, Taipower formulated its tariff schedules:
To upgrade power use efficiency and to fairly reflect power consumption costs, tariff schedules are formulated according to the following factors:
1. Reflecting different time - different power supply costs.
2. Providing correct price signals to guide the customers to use electricity efficiently.
3. Raising the system load factor to help improve the utilization rate of power supply facilities.
4. Avoiding waste and promoting energy conservation.
In addition to fulfilling financial requirements, the formulation of tariff schedules should include reasonable returns. That is, the sales revenue should not only compensate operation expenses but also enable power industries to obtain a reasonable profit. The company will therefore have sufficient capital for power investment and construction.
As a state-owned enterprise entrusted with the responsibility of providing power to society, Taipower has to comply with the government policy that requires it to maintain a stable and cheap tariff schedules. The formulation of tariff schedules should take into consideration the customers’ rights for base line energy (customers’ rights for basic life power consumption) and provide the customers with their minimum demand for power consumption. Thus, the design and adjustment of the tariff schedules should avoid adding financial burden to low-income customers. Furthermore, as electricity price is an important factor for customers’ investment decisions, to avoid the impact of electricity price fluctuations on customers, Taipower will comply with the government policy to conscientiously handle the issue of tariff schedules adjustment.