TAIPEI (TVBS News) — The head of Taiwan Power Company (Taipower, 台電) announced on Wednesday (Sept. 4) that the Legislative Yuan will review two NT$100 billion budgets to subsidize the company in a late September electricity price review meeting, emphasizing the importance of these subsidies to balance the company's finances this year.
Chairman Tseng Wen-sheng (曾文生) said the additional NT$100 billion budget this year mainly aims to subsidize residential electricity prices, adding that if the government approves the budget, Taiwan Power Company could break even this year.
In an interview with Yahoo TV, Tseng explained that the company has faced increasing losses due to the sharp rise in international fuel prices over the past two years.
Tseng noted that the April 1 electricity price hike increased revenue by about NT$60 billion. Combined with reduced fuel costs and other measures, the company saved an additional NT$50 billion. He reiterated that the Executive Yuan's proposed NT$100 billion subsidy, if approved, would help the company achieve financial balance this year.
Tseng highlighted that next year's Ministry of Economic Affairs (MOEA, 經濟部) budget also includes a NT$100 billion subsidy for Taiwan Power Company, pending legislative approval. He warned that without timely financial support, the company might consider raising electricity prices, which could significantly impact domestic prices.
The Taipower chairman pointed out that long-term costs indicate higher electricity prices due to global inflation and rising fuel and construction costs. He cited South Korea's recent electricity price hikes, noting that their residential electricity prices are nearly double those in Taiwan.
Tseng stressed that adjusting industrial electricity prices affects international competitiveness, while residential price adjustments influence consumer behavior. He acknowledged that discussions on energy use in Taiwan often intertwine with nuclear power debates, suggesting a need for separate discussions for national development.