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Ambassador report

[Ambassador report] Free report :Taiwan Electric Industry Liberalization

by Yu Hsuan Huang | 21-02-2020 01:37 Comments 13 Comments recommendations 1 recommendations



The liberalization of the electricity industry has become a term that countries will mention when implementing sustainable development policies. And what does this term mean? This must be explained from the problems encountered before the liberalization of the electricity industry. In Taiwan, the only company that can operate the power market is the Taiwan Power Company, which owns the rights, and Taiwan Power ’s equity is basically invested by the state. Therefore, under the deployment of the country, the power market tends to change because of the changing times. Derive problems of different nature.

 

For example, because the power market is exclusively owned by the Taiwan Power Company's comprehensive power industry, and there is no relevant stakeholder as a benchmark for comparison, the performance of the power market will not be able to be completely monitored by legal sources. This will be the first problem encountered in the operation of the power market, and also an opportunity to open up the free market for the power industry.

 

Then, due to the development of science and technology, renewable energy, coexistence of steam and electricity; and the industrial structure of private power plants. However, under the current regulations, the power generation of renewable energy, gas and electricity co-producers, and private power plants can only sell electricity to Taiwan Power Company, allowing Taiwan Power Company to purchase it at a uniform price. Often, there will be contract disputes and prices when purchasing. Controversy.

 

The current situation does not allow power generators to have better incentive policies or related subsidies because of their own power output. This is also a factor that needs to be regulated in the liberalization of the power industry. How to make all the people in the power market get their own remuneration is the need to be solved by regulations.

 

The last is the unity of power sales. Because Taipower has unified control of the power generation, transmission, and power sales pipelines, it can only be purchased with the Taiwan Power Company in terms of power sales. If there are changes in electricity prices, it will often trigger Public opinion. This is not much different from the situation encountered in the power generation industry, so the liberalization of the power industry came into being.

 

Therefore, the implementation of the electricity industry law is to let the power generation industry, the power transmission industry, and the electricity sales industry no longer be in the hands of the Taiwan Electric Power Company alone, and gradually promote the generation of electricity and the electricity sales industry to allow people to participate. However, the power transmission industry is still operated by the Taiwan Electric Power Corporation itself, but the management is strengthened. Subsequently, the power generation industry and the electricity sales industry gradually turned into retail industries, which allowed the public to choose the companies they needed to buy electricity, and finally derived an emerging market structure.

 

Therefore, the electric power regulatory authorities mentioned in the regulations will become very important under the framework of the free market, because they have to consider the energy ratio, the dispute resolution of the electric power industry, ensure the rights and interests of consumers, and verify Responsibility for electricity prices and various charging rates and their calculation formulas, so if there is no good standard, the electricity industry will be full of unpredictable gray areas.

 

The management details are implemented by the two major units of the electricity tariff review committee and the electricity industry commission. And such new business regulations are also for people who are going to engage in the legal industry in Taiwan in the future. They will have the opportunity to study competition law issues. How to mediate between markets and let all businesses be exposed to rain and dew is a major issue that legal personnel will need to deal with in the future.


Reference:


https://electricitylaw.tier.org.tw/1050726%E9%9B%BB%E6%A5%AD%E6%B3%95%E4%BF%AE%E6%AD%A3%E8%8D%89%E6%A1%88%E6%A2%9D%E6%96%87.pdf



Electric Industry Liberalization

13 Comments

Hyeongmin Mentor

  • Hyeongmin Mentor says :
    Hello Hu suan

    I agree with you that the implementation of renewable energy is an inevitable transition, but it should be clearly standardized under legal regulations. It might not be as easy, but I believe some actions are necessary for the steps toward sustainable development.

    Thank you for the insightful report!
    Posted 23-02-2020 16:56

Dibya Bhatta

  • Dibya Bhatta says :
    Thanks for the report!keep writing the great report!
    Green cheers
    from Nepal
    Dibya Bhatta

    Posted 23-02-2020 11:15

Rachu Khanal

Rajesh Chaulagain

  • Rajesh Chaulagain says :
    Such a detail report!!
    Glad to know about Tiwan electric Energy Liberalization.
    Keep writing
    Posted 22-02-2020 17:36

Jasmine Karki

Lisa Mentor

  • Lisa Mentor says :
    Hey Yu Husan!
    It's your mentor Lisa.

    I really love how you brought up an interesting topic regarding the adoption of renewable energy. We only tend to think of the bright side of transferring to the phase of new energy sources. Yet, there are problems that lie under that bright future suggested by this new energy movement and I think you have spotted one of them here. Liberalizing energy sources are nothing like putting into market other types of good or services. Because energy is not only the necessities in peoples' lives but also the source of production for every industry, liberalizing the company without any preparation or legal adjustment big problems can occur.

    It's something that we have to think about when we are talking about privatizing the energy company.
    Thank you for providing us the topic to think about:)
    It's a well-written report!
    Posted 21-02-2020 17:38

Jasmine Karki

  • Jasmine Karki says :
    Greetings
    I do hope you are doing good..

    Thank you so much for sharing such a wonderful report!!!
    Really felt great to read it and I do hope to read more from you time and again...

    Green cheers
    Regards,
    Jasmine karki
    Posted 21-02-2020 15:25

Sandhya Adhikari

  • Sandhya Adhikari says :
    Hello Yu Husan,

    Greeting from Nepal,
    I do hope you are fine there and doing great with your works!!!!

    Thank You so much for sharing your reports on the topic of Taiwan Electric Industry Liberalization!!!!

    So interesting to go through your reports<

    keep writing such a great report,

    Looking forward to read much more from you!!!

    Yours,
    Sandhya

    Green cheers from Nepal.
    Posted 21-02-2020 15:07

Sabitri  Pandey

  • Sabitri Pandey says :
    Hey Hsuan Huang,
    I feel very pleasure to know about this report based on electrical industry liberalisation. Thanks for the information.
    Cheers!!!
    Posted 21-02-2020 11:57

Asmita Gaire

  • Asmita Gaire says :
    Greetings Huang
    I hope you are doing well
    Very beautifully written

    Thank you so much for this report
    Green Cheers
    Regards
    ASMITA GAIRE
    Posted 21-02-2020 11:29

Kushal Naharki

  • Kushal Naharki says :
    Hello Yu Husan

    I do hope that you are fine and doing great with your works.
    Thank you for your report about Taiwan Electric Industry Liberalization

    Green Cheers from Nepal :)
    Keep writing great reports.
    We are eager to read more reports from you.

    Regards,
    Kushal Naharki

    Posted 21-02-2020 10:20

Theodore  Bechlivanis

  • Theodore Bechlivanis says :
    That's a very concise round-up of the energy situation in Taiwan, thank you for putting it together!
    Posted 21-02-2020 07:00

Sinan Kitagenda

  • Sinan Kitagenda says :
    Hi Hsuan Huang,
    Great ideas, there
    Posted 21-02-2020 05:32

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