TAIPEI (TVBS News) — The Minister of Economic Affairs Wang Mei-hua announced Monday (Jan. 22) that she plans to help the Taiwan Power Company (Taipower) lobby for budgetary support from the Executive Yuan to alleviate its financial distress.
The move follows consultations between the Ministry of Economic Affairs (MOEA), the Executive Yuan, and Taipower regarding the current financial situation and fuel price trends to guide electricity pricing plans for April.
Taipower reached out to the MOEA for assistance regarding its financial status, pointing out that escalating international fuel prices, caused by the war between Russia and Ukraine, have forced other global power companies to substantially hike prices.
As a result, Korea Electric Power Corporation (KEPCO) has seen prices rise by 84%, Tokyo Electric Power Company (TEPCO) by 73%, and Électricité de France (EDF) by as much as 160%.
Taipower's rates are relatively low compared to the cost of power generation, a policy-driven loss initiated to prevent widespread inflation.
The MOEA disclosed that as of 2023, Taipower has already racked up losses of NT$382.6 billion, primarily due to absorbing the impact of price increases to shield Taiwan from serious global inflation.
Discrepancies between Taipower and the CPC Corporation in predicting natural gas prices make Taipower continue observing international coal prices to confirm 2024 cost estimates.
Wang believes mitigating Taiwan Power's financial woes short-term poses challenges but aims to prevent worsening losses for now.
Upon concluding the meeting, Wang urged Taipower to further verify its financial situation, especially fuel cost trends.
It must also consider potential cost reductions if renewable energy suppliers switch to supplying private corporations directly.
Once financial situation estimates are finalized, the MOEA will assist Taipower in lobbying the government for budget support to ease its financial predicament.
Whether to adjust electricity prices, however, will still be decided by the Electricity Price Review Committee, composed of experts, scholars, officials, and civilian representatives.