Policy recommendations on environmental protection: internalization of environmental external costs as a prerequisite

The reform of Electricity Act involves the movement of three spirals of energy transition—emission in power generation, air pollution, and encouraging the development of renewable energy industry, which are also generally structured on the global trend towards green economy, low-carbon society and environmental protection. Furthermore, the revision of Electricity Act as a legal instrument at the moment of Taiwan's energy transition also requires the use of environmental control instruments and administrative measures. The environmental protection-oriented aspect can be a positive factor in driving Taiwan's energy transition, particularly focusing on the internalization of external environmental costs, that is, in the process of examining how to construct forward-looking and progressive electricity industrial regulations, strengthening environmental control is an important basis for thinking, as well as the premise of fair competition among electricity industry.

Policy recommendations on social justice: the social collaboration of energy development and redistribution of its interests

The implementation of Electricity Act should emphasize the realization of social justice, specifically including the following: First, the implementation of social justice should first contains the recognition of the importance of social justice, that is, recognizing the general public has the universal right in energy development, identifying the disparity in energy production and consumption for vulnerable groups and remote areas, and encouraging relevant system innovation and training. Second, to review the unjust distribution of energy subsidies, adjust the electricity price structure so that it reflects a reasonable price, carefully assessing the various policy tools in the process of internalizing external costs, taking into account environmental protection and society Justice. Third, it should be noted that social justice and procedural justice or energy democracy are closely related. No matter which tools are deployed—general subsidies, income redistribution or electricity price subsidy— to solve the problems such as distributive justice, energy poverty and other issues, the government should pay attention to procedural justice, building mutual trust between the government and the people through risk communication, citizens participation. Fourth, regarding the potential risk of energy poverty, conduct open, fair and credible social impact assessment as a basis for policy making, in order to make a reasonable residential price level design. In addition to lower income group, the government should also consider the impact on middle-income earners, and plan corresponding measures to different energy poverty potential groups and regions, improving energy efficiency with specific objectives, including improvements on lighting, air conditioning, in order to gradually meet the social justice aspects of energy transition.

Policy recommendations on energy democracy: flexible and community-based electricity industry structure

The amendment of Electricity Act as the first step in Taiwan's energy transition should thoroughly realize the value of energy democracy in order to achieve a real transformation. (1) Ensure procedural justice in the process of law revising, information transparency, and public participation, to avoid distrust and opposition resulting from the lack of procedural justice. (2) Emphasize the democratic control of the energy system, which is, the flexibility of electricity industry structure, as well as the government’s administrative and regulatory support for community-based energy cooperatives, to make the amendment of our Electricity Act more in line with the spirit of energy democracy.