Taipower: Feitsui Reservoir Demands NT$14.6 per kWh for Power Purchase, Difficult to Agree Due to Fairness Concerns

Central News Agency

(Central News Agency reporter Tseng Chih-yi, Taipei 17th) Feitsui Reservoir and Taipower are at an impasse over water compensation fees. Feitsui Reservoir will not cooperate with extending power generation support. Taipower stated today that the Feitsui Reservoir Administration's demand for an additional NT$3 per ton of water, equivalent to an additional NT$12.5 per kWh, plus the existing NT$2.1 per kWh purchase cost, would bring the total power purchase cost for extended generation to NT$14.6 per kWh. Taipower finds it difficult to agree due to fairness considerations for power purchase costs and respects the Feitsui Reservoir Administration's plan to transition to self-selling green power.

Taipei Feitsui Reservoir Administration Director Lin Yu-yi stated yesterday that because Taipower did not agree to sign the "water compensation fee" contract, Feitsui Reservoir will no longer support emergency power dispatch and plans to promote obtaining hydropower green energy certificates and seek potential cooperative buyers next year to increase revenue for the city treasury.

Taipower explained in a press release today that Feitsui Reservoir primarily supplies domestic water and supplements power generation. The tailwater from power generation is stored in downstream dams for domestic use, achieving multiple uses without waste. Increased power generation also increases electricity revenue. Taipower purchases reservoir power according to the bilateral contract, with purchase amounts exceeding NT$1 billion in the past three years, and the unit price per kWh continues to rise.

Taipower said that for the additional "NT$3 per kWh/ton of water" water consumption fee requested by the Feitsui Reservoir Administration, which is equivalent to an additional NT$12.5 per kWh, plus the existing NT$2.1 per kWh purchase cost, the total power purchase cost for extended generation would be as high as NT$14.6 per kWh. Taipower finds it difficult to agree due to fairness considerations for power purchase costs and respects the Feitsui Reservoir Administration's plan to transition to self-selling green power.

Regarding the Control Yuan's correction that the billing rate is too low, Taipower pointed out that the investigation conclusion asked the Feitsui Reservoir Administration to evaluate the possibility of future power plant transfer and release of renewable energy certificate revenue to maximize the value of water resources. Currently, Taipower and the Feitsui Reservoir Administration's power purchase and sale contract has an adjustment mechanism that will change with overall electricity sales prices. For example, the average purchase unit price for 2025 has been adjusted to approximately NT$2.1 per kWh.

Regarding the Feitsui Reservoir Administration's plan to seek international hydropower sustainable development certification and sell electricity independently, Taipower stated that Feitsui Reservoir's power generation is renewable energy. According to the Electricity Act, it can choose its own electricity buyers. If the Feitsui Reservoir Administration decides to terminate the contract and transfer green power to private enterprises, Taipower respects it.

Taipower emphasized that stable water and power supply in the greater Taipei area is a common goal for both parties and will continue to seek the most socially beneficial cooperation model. (Editor: Pan Yi-ching) 1150417

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