Shafaqna English– Taiwan energy spending is now the key theme in the government’s latest plan. On Thursday, Taiwan’s government announced a plan. It intends to spend about 415 billion Taiwan dollars, or 13 billion US dollars, this year. The money will help two key state-linked firms.
One is Taipower, the main power producer. The other is CPC, an oil refiner. The goal is to help them absorb costs caused by sharply rising global energy prices. Those price rises stem from the Middle East war. In other words, the government is cushioning its energy companies from a foreign conflict’s economic shock. In short, Taiwan energy spending is a direct response to a global price shock.
Unlike many other countries, Taiwan has not shifted most of the higher costs onto consumers. Instead, it provides large subsidies for energy bills. This approach helps hold inflation down. So the government is effectively shielding the public from the full impact of global price increases. For Taiwan energy spending, this means the subsidy policy is a core tool for keeping inflation low.
Source: Reuters
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