Department of Economic Development-FAQ-Shall the increase in price of natural gas be approved by the City Government?

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Shall the increase in price of natural gas be approved by the City Government?

The adjustment of the natural gas pricing schedule and minimum fare due to reasons other than the fluctuation of cost of natural gas sources shall be scrutinized by Taipei City Government and then sent to the Central Government for approval in accordance with Paragraph 1 of Article 34 of the Natural Gas Enterprise Act, which stated: “Natural gas utility enterprises should sell their natural gas to families, commercial businesses and service sectors and charge basic fees according to the calculated regulations, and attach relevant documents and ask for the central competent authorities’ approval via the authority of the municipal government or the county (city) governments before carrying out their sale price and basic fee calculations; when the sale price or basic fee is adjusted, the preceding paragraph applies.”
The adjustment of the natural gas pricing schedule and minimum fare due to the fluctuation of cost of natural gas sources does not need to be scrutinized by the City Government or approved by the Central Government.
According to Paragraph 3 of Article 34 of the Natural Gas Act: “When the gas source cost fluctuates, natural gas utility enterprises should synchronously adjust their natural gas sale price according to the amount of fluctuated cost, and report to the authorities of the municipal government or the county (city) governments within 7 days from the date of adjustment. Authorities of the municipal government or the county (city) governments should notify the central competent authorities when they receive the report. Since the CPC Corporation, Taiwan, which is the only source for natural gas utility enterprises, can adjust the wholesale price of natural gas; natural gas utility enterprises can adjust the sale price according to the price fluctuation provided from CPC Corporation, Taiwan. Natural gas utility enterprises shall inform the adjusted sale price of natural gas to Taipei City Government for reference within 7 days and carbon copy to the Central Competent Authorities.