TAIPEI (TVBS News) — Taiwan's Minister of Economic Affairs J.W. Kuo (郭智輝) defended the financially troubled state utility company on Monday (March 24), urging legislators to approve crucial subsidies aimed at stabilizing Taiwan Power Company (Taipower, 台電). During his remarks, Kuo emphasized that government support remains essential to address the utility's mounting financial challenges that have plagued the company for years. The minister's comments come amid growing public concern over potential electricity price increases and their impact on Taiwan's economic competitiveness.
Speaking to reporters before attending a Legislative Yuan session, Kuo revealed that the electricity price review committee would convene on Friday to determine the magnitude of the upcoming rate increase. The minister acknowledged that any adjustment in electricity prices would likely ripple through the economy and affect consumer prices. He drew parallels between today's economic conditions and historical periods when similar price adjustments were implemented, suggesting that policymakers are weighing current economic pressures against the need for utility financial sustainability.
Kuo disclosed that previous government subsidies to Taipower exceeded NT$300 billion (approximately US$9.1 billion), while the true cost of maintaining frozen electricity rates approached NT$600 billion (around US$18.2 billion). Despite these substantial injections of public funds, the minister admitted that Taipower continues to struggle financially. However, he firmly rejected suggestions that these subsidies indicate operational inefficiency within the utility. Instead, Kuo emphasized Taipower's ongoing initiatives to streamline operations and reduce expenditures across its extensive power generation and distribution network.
Addressing mounting criticism that the proposed electricity price increases would primarily benefit renewable energy provider J&V Energy Technology Co., Ltd. (雲豹能源), Kuo offered a pointed rebuttal. He explained that Taipower's energy purchases from J&V Energy represent only a fraction of its overall power acquisition portfolio and have negligible impact on the utility's monthly balance sheets. The minister characterized the focused criticism on J&V Energy as misplaced and potentially damaging to public perception of Taipower's broader financial challenges and recovery efforts in Taiwan's evolving energy landscape.
