However, prices will not increase for 97% of households, the minister added, following a review of electricity prices.
The government has tried to contain price increases for consumers in order to limit the impact of inflation, including for energy.
Taiwan’s state-owned refiner, CPC Corp, has kept gasoline and natural gas prices artificially low for consumers despite rising global commodity prices.
This generated significant losses for both CPC Corp and the state-owned power company Taipower.
Taipower is expected to see its fuel costs rise by T$300 billion ($10.13 billion) this year, the economy minister said.
Speaking ahead of the announcement on Monday, Economy Minister Wang Mei-hua said Taiwan energy prices for consumers were already among the lowest in the world.
Analysts at Taiwan’s Cathay Financial Holding said earlier on Monday that a 5-8% rise in electricity prices could add 0.2-0.4% to the consumer price index this year, but did not would have a very small impact on overall economic growth.
($1 = 29.6280 Taiwan dollars)