TAIPEI (TVBS News) — The ongoing Russia-Ukraine conflict has triggered an unprecedented surge in global fuel prices, forcing Taiwan Power Company (台灣電力公司), Taiwan's state-owned utility, to spend more than NT$600 billion (US$18.5 billion) on fuel procurement in 2022 and 2023, twice the amount before the war began. The Energy Administration (能源署) revealed these figures on Sunday, igniting fresh debate over the island's energy security strategy.
Taiwan People's Party (TPP, 民眾黨) Legislator Chang Chi-kai (張啓楷) criticized Taiwan Power Company's mounting losses, blaming the government's reluctance to utilize nuclear power. The Ministry of Economic Affairs (MOEA, 經濟部), Taiwan's commerce and industry ministry, countered that skyrocketing international fuel costs and artificially suppressed electricity rates were the primary culprits. The utility has subsidized NT$600 billion (US$18.5 billion) in residential and industrial electricity costs since 2022, resulting in projected accumulated losses of NT$422.9 billion (US$13 billion) by year-end.
MOEA officials defended their energy policies, noting that even with the 2015 energy mix—when nuclear power generated 16% of electricity and thermal plants produced 78% — the cost per kilowatt-hour would still approach NT$4 (US$0.12) under 2023 fuel prices. The ministry stressed that Taiwan's energy transition strategy mirrors global movements toward diverse renewable sources and intensive conservation measures. Officials pointed to the island's feed-in tariff (FIT) system, which has successfully driven down costs for solar photovoltaic installations.
The energy market is increasingly embracing corporate power purchase agreements (CPPA), a trend that promises to ease financial pressure on Taiwan Power Company's pricing structure. Ministry officials also expressed concern about potential disruptions from changing U.S. tariff policies on Taiwan's industrial sector. In response to these challenges, Taiwan's government has earmarked NT$100 billion (US$3.08 billion) from this year's budget surplus to stabilize electricity prices and bolster economic growth. ★
