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Bureau of Energy, Ministry of Economic Affairs, R.O.C.

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What is the pricing system of natural gas in Taiwan?

CPC Corporation, Taiwan (CPC) reviews the changes of the cost of imported liquefied natural gas monthly in accordance with the government-regulated gas pricing system. If the range of adjustment in gas price is within 3% for one month or less than 6% accumulated for three consecutive months, CPC is authorized to announce the price adjustment on her own and reports to the Ministry of Economic Affairs after an adjustment announced. If the range of adjustment in gas price is in excess of the authorized range mentioned above, CPC should report to the Ministry of Economic Affairs for approval.
Pricing formula: P(Price)=GC(Gas Cost)+SC(Supply Cost)*β
(β: cost factor for supplying to various types of users)
(1) for industrial = GC(Gas Cost)+SC(Supply Cost)*100%
(2) for gas utilities =GC(Gas Cost)+SC(Supply Cost)*84.68%
(3) for Cogeneration = GC(Gas Cost)+SC(Supply Cost)* 72.52%
(4) Price for power generators:
a. In mild months= GC(Gas Cost)+SC(Supply Cost)* 50.11% (seasonal factor=1)
b. In summer months= GC(Gas Cost)+SC(Supply Cost)* 50.11%*104% (seasonal factor=1.04)
c. In winter months=GC(Gas Cost)+SC(Supply Cost)* 50.11%*93% (seasonal factor=0.93)
Table 1 Current Pricing Structure
User Current Pricing Structure
Industrial GC+SC×100%
Gas Utilities GC+SC×84.68%
Cogeneration GC+SC×72.52%
Power Generators mild months GC+SC×50.11%
summer months GC+SC×50.11%×104%
winter months GC+SC×50.11%×93%
      data resource: CPC

Update: 2019-07-23
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