2024 Power Play: A Complete Guide to Energy Saving for Enterprises and Homes

Taiwan Power Company has confirmed that starting April 1, a comprehensive adjustment in electricity prices will be implemented for all user categories, including industrial users, residential users, small businesses, and low-voltage users, all of whom will face an increase in electricity costs.

However, the new system varies with the amount of electricity used, and the increase also varies. This time, even small households using less than 300 kWh are subject to price increases. Many people are worried and uncertain about how much their household electricity bill will increase. This article compiles a Q&A on the electricity price increase for 2024, including how much the price tiers will increase and how to use electricity most efficiently during this price increase.

Electricity Price Increase Rates

People can determine the extent of the electricity price increase from the "Type of Electricity Used" and "Billed kWh" sections of their electricity bill:

Current Electricity Cost per kWh

Users can choose to be billed by "Progressive Electricity Rate (non-time-based)" or "Time-based Electricity Rate" with most residential users opting for the progressive rate, where the electricity price remains the same around the clock.

Note 1: Summer electricity rates are applicable from 6/1 to 9/30.

Note 2: For usage above 1000 kWh, the price per kWh from 701 to 1000 kWh will be applied for calculation.

Additional information: Summer and non-summer rates differ.

How to Calculate Post-Increase Summer Electricity Bill？

For a residential electricity usage of 750 kWh in July, the calculation would be as follows:： 

NT$1.68 x 120 kWh

＋NT$2.45 x (330 kWh - 120 kWh) 

＋NT$3.70 x (500 kWh - 330 kWh)

＋NT$5.04 x (700 kWh - 500 kWh)

＋6NT$6.24 x (750 kWh - 700 kWh) = NT$201.6 + NT$514.85 + NT$999 + NT$1008 + NT$312 = NT$3035 

Compared to NT$2537 in 2023, the 2024 electricity bill will increase by NT$498.

How to Save Electricity Amid Rising Costs

As electricity prices rise and the summer season approaches, knowing how to smartly save on the usage of electrical appliances becomes crucial. Besides using LED lighting and regularly cleaning air conditioner filters, what other energy-saving tips are there that can significantly save on household expenses?

Smart Use of Electric Water Heaters

It's often said that frequently turning electric water heaters on and off consumes a lot of electricity, but leaving them on might consume even more, right? Actually, by following five daily secrets of using your electric water heater, you can make it energy-efficient！

• Turn Off the Electric Water Heater to Save Electricity

  • For those who are away from home for several days a week, it's recommended to turn off the water heater to save electricity. Alternatively, installing a timer to automatically cut off and restore power can save you the trouble of toggling it manually.

• Choose the Right Capacity Electric Water Heater Based on Household Size

  • Select the appropriately sized water heater based on the number of people in your household to avoid unnecessary electricity consumption！

• Electric Water Heater Energy-Saving Tips

  • If you're using an instant electric water heater, showering can reduce the amount of hot water needed by two to three times, preventing the continuous increase in electricity consumption during heating. If your home uses a storage electric water heater, you can turn it off when not in use and turn it back on half an hour before use.

Tips for Selecting and Placing a Refrigerator

In addition to choosing refrigerators with an energy-saving label, pay attention to the energy efficiency sticker rated from one to five levels. 

• Right Side of the Energy Efficiency Label

  • The 'thermometer' represents the energy efficiency level, with five levels marked from bottom to top. The highest fifth level represents the largest carbon dioxide emissions and the highest energy consumption. Lower levels mean less carbon dioxide emission, contributing less to global warming, making them more environmentally friendly products.

• Upper Left Corner for "Annual Electricity Consumption"

  • Indicates how much electricity a unit consumes annually—the lower the consumption, the better.

• Lower Left Corner for "Energy Efficiency Ratio"

  • Represents how much cooling a unit provides per kWh of electricity—the higher the number, the better.

 Thus, the sequence for judging these three indicators should be "the lower the energy efficiency level, the better," "the lower the annual electricity consumption, the better," and "the higher the energy efficiency ratio, the better."

In addition, it's important to ensure good air circulation inside the refrigerator. It's best to fill it to about 70-80% capacity, and be sure to leave a space of about 10-15 centimeters from the wall for heat dissipation.

Timer Control for Standby Power

Standby electrical appliances refer to those that continue to show indicator lights or illuminated displays even when they are turned off, such as microwaves, rice cookers, computer monitors, printers, etc. These are often the most overlooked electricity consumers in homes.

Research has found that electricity consumed by appliances left plugged in accounts for about 10-15% of a household's total electricity usage, and for businesses, this figure can be astonishingly high, possibly reaching as much as 30%. Therefore, it's recommended to unplug appliances when they're not in use for a long time. If there is concern about damage from repeatedly plugging and unplugging, you can use an energy-saving timer. Smart use of a timer can control the power supply to various appliances in a particular area or those used at the same time, allowing them to turn on automatically when needed and cut off power at other times, effectively the same as unplugging them.

Home Energy Saving Q&A

1. Why is the electricity bill more expensive in summer?

Due to the high temperatures in Taiwan's summer, the demand for electricity, especially for air conditioning, has increased significantly. To meet this demand, Taiwan Power Company has to operate more expensive power generation units, leading to higher costs of supply. This is why higher electricity rates are applied from June to September, and the non-summer rates resume after October 1st.

2. How is the electricity bill calculated for rentals?

"How is the electricity bill calculated for rentals or sublet suites?" is a common question among workers and students. Landlords renting out suites or rooms usually use a shared electricity meter. When many people use electricity together over a long time, the meter reading will inevitably be high. Tenants often question why landlords charge about NT$5 or even NT$6 per kWh when the increase in electricity price by Taiwan Power Company is around NT$3 or NT$4. To clarify, suites and rooms with many partitions and residents naturally have a higher total electricity consumption. Tenants might see an individual meter in their rooms, but these are installed by electricians hired by the landlord, and the total consumption is still calculated by the main meter managed by Taiwan Power Company. Since Taiwan Power Company uses a progressive pricing system, the more electricity used, the higher the charges. Additional communal electricity costs, such as lighting for stairwells and elevator lobbies, are also included, which is why the electricity fee charged by the landlord might be higher than if you calculated it just for your own usage. The more individual meters there are, the higher the total electricity usage recorded.

However, a minority of unscrupulous landlords have been eyeing the electricity price hike and plan to take advantage of the situation to raise the per-unit electricity charge. To avoid this, tenants can suggest that landlords install Taiwan Power Company's free smart meters and participate in energy-saving counseling. This helps both tenants and landlords to clearly understand the electricity costs, avoid unnecessary disputes, and save a significant amount on electricity bills. With the smart meter and app integration, Taiwan Power Company staff can remotely read the meter (no need to worry about forgetting to fill out forms), analyze electricity usage habits (helping to save electricity), and apply for time-of-use rates (saving on bills). Even if the electricity usage exceeds 700 or 1,000 kWh per month, the progressive rate increase is temporarily suspended for this price hike.

3. Application for Tax Rebate on Energy-Saving Home Appliances

Applications can be made until June 14, 2025, for purchases of energy-saving labeled 1st or 2nd-tier air conditioners (heaters), refrigerators, and dehumidifiers. To qualify for the tax rebate, the appliance must meet the Ministry of Economic Affairs approved energy efficiency of the 1st or 2nd-tier, must be a brand-new appliance not used for sale, with no returns or exchanges, and the application must be made within six months from the day after purchase. The Ministry of Finance offers a maximum goods tax rebate of NT$2,000.

Additionally, to encourage the replacement of old electrical appliances at home, the Energy Bureau of the Ministry of Economic Affairs has extended the "Residential Appliance Replacement and Energy Saving Subsidy" until the end of 2024. By replacing old appliances with new ones with 1st tier energy efficiency ratings for air conditioners and refrigerators, you may be eligible for a subsidy of NT$3,000 per appliance. This means each household appliance can enjoy a maximum subsidy of up to NT$5,000.

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