Taipower Secures NT$300 Billion Special Loan; Economic Minister Cites Short-Term Energy Procurement Needs

According to media reports citing Reuters, Taiwan Power Company (Taipower) will receive a special loan of NT$300 billion from eight state-owned banks to alleviate financial pressure caused by frozen electricity prices. The loan has a term of three years and an interest rate of approximately 1.85%. The funding source follows the previous model used for CPC Corporation, with funds provided through deposit transfers from Chunghwa Post.

Economic Minister Kung Ming-hsin, speaking before attending the Legislative Yuan's Economic Committee, stated that Taipower's primary mission is ensuring stable power supply, followed by supporting民生 electricity needs and reducing pollution. He noted that Taipower has consistently adhered to these principles through global challenges including the pandemic, the Russia-Ukraine war, and the current Middle East conflict.

Kung acknowledged that Taipower has accumulated losses due to high energy procurement costs, leading to significant short-term liquidity needs. He expressed gratitude to the Executive Yuan, Central Bank, and Ministry of Finance for their support, confirming all measures comply with banking credit principles.

He emphasized that the loan serves only as working capital for operations, not for structural funding, which would require equity investment. He added that the government has long pursued this approach.

Regarding future financial support, Kung said he hopes for budgetary subsidies or capital increases but respects differing opinions in the legislature.

On the possibility of nuclear power restarts helping to reduce Taipower's losses, Kung stated that nuclear units are currently undergoing voluntary safety inspections, and final decisions depend on the Nuclear Safety Commission's review. Even if restarted, their contribution would be limited, as nuclear power's share of total generation has decreased due to expanded overall capacity.