Feitsui Reservoir Wants to Collect Water Consumption Fee; MOEA: Hydropower Legally Exempt

Central News Agency

(CNA Reporter Tseng Chih-yi, Taipei, 19th) Regarding the Taipei Feitsui Reservoir Administration's claim that it will charge Taipower a water consumption fee in accordance with Ministry of Economic Affairs (MOEA) regulations, the MOEA's Water Resources Agency explained that hydropower generation is not a water-consuming behavior. According to Article 84-1 of the "Water Act," the MOEA does not levy water consumption fees on water used for hydropower generation.

As for whether the Feitsui Reservoir Administration wishes to negotiate the collection of related fees, the Water Resources Agency stated that if it is in the nature of a "power generation compensation fee" or "power generation tariff," it should be handled by both parties through a negotiation mechanism. It is inappropriate to cite the Water Act as the relevant basis, so as to avoid causing public misunderstanding.

Taipei's Feitsui Reservoir intends to collect a water consumption compensation fee, but the fee is considered too expensive. Taipei Mayor Chiang Wan-an, who attended an Education Department event today, said in an interview that the rate of the water consumption fee is also a standard designated by the central MOEA. "If Taipower is willing to negotiate the price, the reservoir is willing to discuss it."

The Water Resources Agency stated in a press release that hydropower generation uses the energy generated by the drop in water level to convert into electricity. During the power generation process, water is not consumed or depleted. The water after power generation can still supply other water demands downstream, which is not a water-consuming behavior. Therefore, for those whose registered water right purpose is hydropower generation, according to Article 84-1 of the "Water Act," the MOEA does not levy a water consumption fee on water used for hydropower generation.

The Water Resources Agency pointed out that according to Article 84-1 of the Water Act, the collecting agency for the water consumption fee is the central competent authority, the MOEA. Local governments are not the statutory collecting agencies for this article, and the relevant responsibilities should be clarified.

Regarding the current operation of the reservoir, the Water Resources Agency explained that Feitsui Reservoir currently has a water storage rate of 91.6%, which is already higher than the upper limit water level set in the operation guidelines. Cooperating with power generation under these circumstances helps overall energy dispatch. The agency will continue to uphold the principle of administration according to law, properly manage water resources, and ensure stable water supply and public interests.

The Taipei Feitsui Reservoir Administration recently stated that it will not cooperate with extending power generation support. Taipower stated that the administration requested an additional water consumption compensation fee of 3 NTD per ton, which translates to an additional 12.5 NTD per kWh of electricity. Adding the current power purchase fee of 2.1 NTD, it means the power purchase fee for extending power generation is as high as 14.6 NTD per kWh. Considering the fairness of power purchase costs, Taipower found it difficult to agree, and also respects the administration's plan to transition to selling green power itself. (Editor: Huang Kuo-lun) 1150419

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