TAIPEI, March 27 (Reuters) - Taiwan will not raise electricity prices for now even though energy prices have increased due to the war in the Middle East, to help maintain price stability and industrial competitiveness, the economy ministry said on Friday.
The government has been trying to contain price rises across the board for consumers to help limit the impact of rising international energy prices, including heavily subsidising energy.
"In light of the risks arising from escalating conflict in the Middle East and changes in international tariffs, and in order to help stabilise consumer prices and maintain industrial competitiveness, the committee decided not to adjust electricity rates this time," the ministry said in a statement.
The ministry's electricity price review committee meets at the end of every March and September to discuss rates for state-owned utility Taipower.
Taiwan, which has kept inflation below the central bank's 2% "warning line" for the last 10 months in a row, is a major producer of the advanced semiconductors used to power the megatrend towards AI.
Taiwan's central bank said in a report to lawmakers on Friday that the war's impact on the economy depends on its duration, intensity and the geographical scope of the fighting, but it also said it generally expected stable growth this year.
ALTERNATIVE SOURCES
Taiwan has had to look for alternative sources for crude oil and LNG since the war began, including the U.S., given the country's previous heavy dependence on the Middle East as a supplier.
Taiwan is also reconsidering the use of nuclear power, having closed the last operating station, located in the far south of the island, last year.
Taipower said in a separate statement on Friday that it had sent a proposal to reopen that plant to the Nuclear Safety Commission.
But it said even if the plan is approved the plant would not immediately come back online, as the safety inspections could take up to two years.
(Reporting by Jeanny Kao and Ben Blanchard; Additional reporting by Faith Hung; editing by Philippa Fletcher and Jane Merriman)
