TAIPEI (TVBS News) — Taiwan's state-owned Taipower has reported a loss of NT＄130 billion for the first half of 2023, despite the recent government decision to raise electricity prices for industrial users. The cumulative losses over two years are projected to exceed NT＄460 billion by the end of the year.
The Ministry of Economic Affairs has decided to end the freeze on electricity rates for 880 high-voltage businesses in September, resulting in a 15% price increase for five business sectors: cinema, theater, gym, restaurant, and catering services, as well as department stores.
The move is expected to generate NT＄1.6 billion in revenue for Taipower.
Cheng Jui-he, an analyst from the Chung-Hua Institution for Economic Research (CIER), stated: "Generating one kilowatt-hour (kWh) of electricity costs between NT＄3 and NT＄4, while the average household electricity price is NT＄3 per kWh, resulting in a loss of NT＄1 per kWh sold."
"Since fuel costs make up 70% of Taipower's cost structure, the majority of these losses are attributed to the increasing global fuel prices," Cheng added.
As the domestic market recovers, rising power prices, inflation, and labor shortages are driving up operating costs for businesses, with some taking steps to reduce electricity expenses through energy-saving measures.
"Our store's monthly expenses have increased by NT＄1,000 to NT＄2,000," Hsia Ying-hsiang, a restaurant chain manager, noted, "However, after applying for a two-tier electricity rate, we are now able to save approximately NT＄1,000 to NT＄2,000 per month."
"Furthermore, the company has offered us guidance, including the installation of LED lights in our new stores," Hsia said.
While the global energy market has stabilized recently, Taipower has received NT＄150 billion in capital injection and NT＄50 billion in electricity subsidies from the government. The company will receive another NT＄100 billion next year's annual budget allocation.
Experts believe that consumer markets are unlikely to experience significant fluctuations in the short term. However, some manufacturing industries may face rising power prices if comprehensive energy policies are not implemented soon.
