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Abstract:Electrical Power operation in Taiwan is moving toward liberalization and privatization due to the influence of the global economic deregulation trend. To open up private investment opportunities and enable funds to be more easily obtained the government has proposed to pass new legislation, Electricity Act Amendment to improve the investment environment, restructure the industry and privatize the state-owned electricity utility Taipower. Power industry deregulation policy have profound influence on public benefits due to the utility characteristics of the industry. As a regulator, government has to guard general public interests and therefore should monitor and govern the management and the performance of power industry, especially of the utility sectors. This combined with the study on the deregulation scheme of Taiwan electricity supply industry will produce a list of evaluation factors to improve the performance of the power business. These evaluation factors include measurable and non-measurable ones. With the aid of these evaluation factors government will govern and manage the power industry easily and public can also monitor the performance of power companies based on these factors. This will help the power industry to improve their competitive status in the market.