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A study of the operational mechanism of the Taiwan Electricity Fund(in Chinese)

No.:CA0039

Author:King-Min Wang and Chia-Wen Tu

Price:Out of print

Publication:2006.05

Abstract:

The privatization and liberalization of the electricity supply industry is of a global trend. For the development of a sustainable Taiwan electricity market to improve the energy policy planning and to increase efficiency, our government also attempts to promote the reform in the electricity supply sector. According to the Amendment of Electricity Act just completed by the Energy Bureau currently, all integrated utilities like Taipower and generation companies are required to share the contributions for an Electricity Fund to fulfill four prescribed policy obligations. These include energy research and development, energy conservation, energy mix diversification and electricity universal access. In other words, before deregulation Taipower Company has to be responsible for the above energy policy obligations alone. Once the Amendment is enacted, the Electricity Fund will carry out the above policy obligations. Whether these obligations can be done efficiently and effectively or not, will depend on the construction of a proper operational mechanism for the Electricity Fund. The purpose of this paper is therefore to study how to set up the Electricity Fund and to design its operational mechanism. A transparent, just and reasonable funding system will reduce the future disputes and allocate the obligations equally effectively. This will improve and enhance the achievement of the energy policy. The result of the study can be served for the policy makers to implement such Electricity Fund system.
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