KAOHSIUNG (TVBS News) — Vice Premier Cheng Wen-tsan said Monday (Aug. 14) that Taiwan's green energy development doesn't attribute to Taipower's financial losses.
Responding to the media questions at an event in Kaohsiung for the Asia New Bay Area, Cheng said that the main reason for Taipower's financial losses is due to the soaring international prices of fuel and coal.
A Taiwanese internet celebrity, Chen Chih-han, accused Taipower's purchases of green energy resulted in the company's financial loss and described it as corruption.
Cheng pointed out that Taipower's operating costs last year were more than NT＄900 billion. And the fuel cost was NT＄616.3 billion, which accounts for more than 80% of Taipower's total cost. In comparison, the price for renewable energy purchases was NT＄58.9 billion, about 6.17%.
He shared examples of nearby countries of Japan and Korea, which face financial losses of NT＄880 billion and NT＄750 billion, respectively — illustrating that the Russia-Ukraine war has affected the hike in electricity prices not only in Taiwan.
Even under the high cost of electricity, Taiwan adopts the strategy of freezing price increases, which is different from the Ma Ying-jeou government. Cheng explained that having Taipower and CPC Corporation absorb the losses is to hope to reduce the impact on people's lives and reduce the pressure from inflation.
Cheng further said that Taipower had accumulated over NT＄500 billion in losses for two consecutive years. Hence, the government has to allocate a budget this year and the next to support Taipower.
"Avoid casting blame based on differing political stances," Cheng said.
Taipower released a statement a day earlier to respond to Chen's remarks, stating that fuel costs have doubled to over NT＄600 billion due to the ongoing war. If Taipower is to balance out the expenditure, it would have to increase electricity prices by 50% to 60%, and would inevitably cause high inflation.
