Viral claim about Taiwan's summer electricity pricing is false, experts say

A viral social media graphic claiming a "three-tier pricing" system for electricity in Taiwan during summer is spreading misinformation, experts have clarified. The graphic suggests consumers must avoid specific times to save on electricity bills, but this is an annual rumor that experts say is incorrect.

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Be careful, the "three-tier pricing" graphic for summer residential electricity that is currently circulating online is incorrect information.

According to Taiwan's electricity provider, Taipower, approximately 99% of household users are on a progressive tiered pricing system, which bases charges on consumption volume and is unrelated to the time of day. While households can opt for time-of-use pricing, the progressive system is generally more cost-effective for most families due to moderate electricity usage and limited off-peak consumption. High-usage customers, those consuming over 800 kilowatt-hours per month, are advised to use Taipower's online calculator and apply for time-of-use pricing if beneficial.

Furthermore, the viral graphic contains inaccuracies when compared to Taipower's official time-of-use rates. For instance, it incorrectly lists the peak hours as 4 p.m. to 8 p.m. at 6.71 New Taiwan dollars per kilowatt-hour, whereas Taipower's official peak hours are 4 p.m. to 10 p.m. at 7.13 NTD/kWh.

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The vast majority of households use progressive tiered pricing, not time-of-use pricing.

Taipower also reiterated that the summer electricity rate, implemented annually from June to September, is a seasonal adjustment and not a price increase. The perception of higher bills in summer is primarily due to increased electricity consumption, such as from air conditioning. The highest tier, 8.86 NTD/kWh, only applies to electricity consumption exceeding 1000 kWh, a threshold that over 97% of residential users do not reach monthly.

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The residential summer electricity rate system has been implemented for 37 years; it is not a new system. It is implemented fixedly for 4 months each year, from June to September, and is part of the average annual electricity price, not a price hike.