TAIPEI (TVBS News) — Premier Cho Jung-tai (卓榮泰) proposed a supplementary budget of NT$100 billion to subsidize the accumulated losses of the Taiwan Power Company (Taipower, 台電) on Tuesday (Nov. 19). Cho reported that Taipower suffered losses of NT$409.7 billion by the end of September and explained that one of the main reasons was the company absorbed the price gap caused by the surge in international fuel prices since 2022 without significantly raising domestic electricity rates.
He pointed out that the 2022 Russia-Ukraine war spiked global fuel prices, triggering inflation worldwide, leading to countries like Japan and France also facing challenges, subsidizing NT$550 billion and NT$700 billion, respectively, to ease the burden on consumers. Taiwan's government earmarked NT$50 billion in the post-pandemic special budget to support household electricity and invested NT$250 billion to enhance the power grid's resilience.
Cho indicated that Taipower absorbed NT$260.9 billion for residential and small business electricity, NT$69.7 billion for declining industries, and NT$21.3 billion for disadvantaged social groups. The Executive Yuan plans to issue debt to fund the NT$100 billion supplementary budget for 2024 to continue subsidizing electricity costs absorbed by Taiwan Power Company.
The ongoing financial challenges highlight the global impact of fuel price volatility. As Taiwan navigates these economic pressures, the proposed budget reflects a commitment to maintaining energy affordability and infrastructure resilience.
