萬國法律事務所

Taiwan Power Company (TaiPower) entered into Power Purchase Agreements (PPAs) with Ever Power IPP Co., Ltd. and the other independent power producers (IPPs). After concerns regarding the power purchase tariffs were voiced and discussed by the general public in 2012, the Fair Trade Commission (FTC) initiated an investigation into whether the IPPs violated the Fair Trade Act (FTA) in the negotiations between TaiPower and the IPPs on an amendment to the power purchase tariffs.

On March 15, 2013, the FTC issued an administrative disposition, determining that Ever Power and the other IPPs had reached an agreement to jointly refuse to adjust the power purchase tariffs, which constituted a prohibited concerted action under the FTA. The FTC also imposed a fine of NTD 6.3 billion on the IPPs, and ordered the IPPs to cease the illegal concerted action.

After an administrative appeal to the Executive Yuan, the IPPs received an administrative appeal decision stating that the IPPs had engaged in a prohibited concerted action and thus the FTC’s disposition regarding this violation was sustained. However, the Executive Yuan revoked the disposition regarding the fine. The IPPs then filed an administrative litigation in the Taipei High Administrative Court, arguing that the IPPs did not engage in an illegal concerted. The Court rendered its judgment on October 29, 2014 revoking both the FTC’s disposition and the Executive Yuan appeal decision.