On July 14, the Ministry of the Interior addressed recent tenant concerns about the new rental electricity billing system by announcing changes to the "Mandatory and Prohibitory Provisions of Standard Form Contract for Housing Rental." These changes will take effect on July 15 and will apply only to new residential lease agreements signed from that date onward, without affecting existing contracts. However, the parties involved can choose to mutually agree to implement the new provisions for their current agreements.
The main purpose of the new system is to ensure that rental electricity charges are reasonable and fair, reducing disputes. Key points include:
•Electricity Billing Standards: If electricity is billed according to usage, landlords cannot charge more than the “current average electricity price per kilowatt-hour” as shown on the electricity bill. If electricity is not billed according to usage, the total electricity charge cannot exceed the total amount on the electricity bill. Extra charges for electricity used for outdoor public facilities are not allowed if not included in the bill.
•Rental Electricity Information: When collecting electricity charges, landlords must provide tenants with the current average electricity price per kilowatt-hour and usage information. Tenants can also apply to Taiwan Power Company (Taipower) to inquire about related electricity charge information.
To address potential issues with the new system, such as how to settle accounts for early lease termination and how to apportion electricity costs for shared areas in subdivided rental units, the Department of Land Administration has compiled relevant suggestions for handling these situations. Landlords and tenants can refer to these suggestions. People can visit the "Leasing Regulations Section" on the Land Administration Department's website (URL: https://www.land.moi.gov.tw/chhtml/news/89) to download the new lease contract template, information packages, and FAQs. The website also provides new contract terms that can be used to replace the provisions of the prior contract template. For further inquiries, they can call the 1996 Ministry of the Interior service hotline or contact local governments.
The Ministry of the Interior reminds landlords that, following the amendments made in 2023 to the Rental Housing Market Development and Regulation Act, all residential lease contracts are fully protected under the Consumer Protection Act. If the new regulations are violated by overcharging for electricity, tenants can file complaints with the consumer protection or land administration units of county and city governments to seek a resolution. Failure to comply may result in fines ranging from NT$30,000 to NT$300,000. Repeated non-compliance can lead to increased fines, which may range from NT$50,000 to NT$500,000. Local governments will periodically inspect lease contracts to ensure tenant rights.
Additionally, the Ministry of the Interior has signed a cooperation agreement with the Legal Aid Foundation to expand free legal telephone consultations regarding rental issues, starting in August. If tenants face challenges such as rent increases, lease terminations, or hidden electricity charges, they can contact the Legal Aid Foundation by phone to learn how to protect their rights.