Currently, the Electricity Act Amendment is under review. The final version is still amendable. Liberalization of electrical power operations in Taiwan is set out in the Electricity Act Amendment in draft, according to which Independent System Operator (ISO) will be the core body of future market operations. Its establishment will therefore be the key to the liberalization process. The objectives of liberalization are to achieve higher efficiency and lower cost of electricity for consumers through the introduction of competition, to ensure the security of real-time power supply, to allow open and non-discriminatory access to transmission and distribution services, to gain allocative and dynamic efficiency for investment, and to maintain fuel diversity policy targets. According to the draft of the Electricity Act Amendment, the reform of the electricity supply industry in Taiwan involves restructuring the Taiwan Power Company into separate Generation, System Operation, Transmission and Distribution business units to avoid suggestions of cross subsidization and to increase transparency in the dispatch process. However, Taipower will remain a vertically integrated company. In the market and system operation an independent system operator (ISO) will be established to encourage fair competition in the supply of electricity to consumers. As for the surveillance and oversight of the market and system operation, the Act prescribes the establishment of a specialist electricity regulatory body with adequate technical expertise in power system operation, as well as legal and economic expertise. The ISO will also need to develop a real time information system to ensure that the Regulator has adequate market and system operating information regarding the day-to-day operation of the industry. The regulator is responsible for developing the dispatch rules, the dispatch boundaries, services, processes, standards and emergency procedures that would be implemented through the
