TAIPEI (TVBS News) — Minister of Economic Affairs J.W. Kuo (郭智輝) explained on Tuesday (Dec. 24) that electricity rate adjustments fall under the jurisdiction of the electricity price review committee, though he urged Taiwan Power Company (Taipower, 台電) employees to strive toward being operators who do not require price increases.
Following the passage of the amendments to the "Act Governing the Allocation of Government Revenues and Expenditures" (財劃法), many are concerned over potential electricity rate hikes, as it could affect Taipower's NT$200 billion budget allocation, posing challenges for the company next year. Kuo noted that the Ministry of Economic Affairs (MOEA, 經濟部) estimates a budget reduction of nearly NT$30 billion, excluding Taipower's budget.
Recent surges in international fuel prices have exacerbated Taipower's financial losses, which reached NT$22.2 billion from January to October this year, with accumulated losses totaling NT$404.1 billion. The Executive Yuan approved a NT$100 billion subsidy earlier this year and has allocated the same amount for next year, pending legislative review.
Previously, Kuo stated that if electricity prices increased within two years after subsidizing Taipower's losses, it might signal his departure. However, the new act's passage could alter the subsidy budget. He emphasized the ministry's goal for Taipower to operate without incurring losses, urging management to work harder. Despite this, Kuo acknowledged that high raw material prices might necessitate management interventions.
