TAIPEI (TVBS News) — The Executive Yuan approved an additional budget of NT$100 billion for 2024 on Thursday (May 2) to help the Taiwan Power Company (Taipower) offset its electricity costs. The proposal will now be sent to the Legislative Yuan for review.
The move comes in response to Taipower's long-standing financial difficulties. By the end of 2023, the company had accumulated losses of NT$380 billion.
Taipower Vice President Wang Jenn-yeong said that without the NT$100 billion subsidy and an increase in electricity prices, the company is projected to run a deficit of over NT$210 billion this year. However, with the price hike implemented on April 1, expected to generate an additional NT$63 billion, and the proposed subsidy, the company's losses could be reduced to NT$10 billion, considering fuel prices.
Premier Chen Chien-jen said that the global pandemic, the Russo-Ukrainian war, and geopolitical factors have significantly increased international fuel prices, which has greatly increased Taipower's power generation costs in recent years.
In addition, Chen expressed "deep regret" over the opposition party's proposal to freeze electricity prices, which was recently approved by the Legislative Yuan. He pointed out that adjustments to electricity prices are based on the Electricity Act's Article 49 review mechanism, and the government is legally obliged to comply with and implement the review results.