Rising Gas Prices Drive Up Power Costs; Taipower Vows to Prevent Worsening Losses

(CNA, by reporters Hsieh Yi-hsuan and Tseng Yun-ting, Taipei, 20th) With the Middle East conflict driving up international energy costs, legislators have raised concerns about the impact of rising natural gas prices on Taiwan Power Company's (Taipower) profitability and electricity prices in the latter half of the year. Taipower Chairman Tseng Wen-sheng stated that this year's budget originally estimated a loss of about NT$28 billion. He noted that there are currently signs of easing in the international situation and that the goal is to prevent losses from worsening beyond the budgeted amount, pending further observation. The Legislative Yuan's Economics Committee today reviewed the operating budget of subordinate units for the central government's 2026 general budget, including the budgets for Taiwan Power Company and Taiwan Sugar Corporation, both supervised by the Ministry of Economic Affairs. In an interview during the session, Tseng Wen-sheng pointed out that if natural gas prices do not fall, the loss could exceed the initially budgeted figure of approximately NT$28 billion. However, with the international situation showing signs of easing and suppliers gradually increasing production, there are still six months left in the year to observe developments. Taipower's goal is to strive to ensure the loss does not exceed the originally budgeted NT$28 billion. Regarding pressure for an electricity price hike in October, Tseng said that a more complete picture of the overall natural gas situation will be available by the Electricity Price Review Committee's meeting in September, at which time a report will be made to the committee. Additionally, Minister of Economic Affairs Kung Ming-hsin stated in an interview that the subsidies required for Taipower and CPC Corporation to absorb the difference in international fuel costs are currently being inventoried and coordinated by the Directorate-General of Budget, Accounting and Statistics. The handling of this will be evaluated based on this year's tax revenue and overall fiscal situation. Kung said the Ministry of Economic Affairs has conveyed its needs to the Executive Yuan and is currently seeking support for both CPC and Taipower. However, the exact amount is difficult to calculate due to international uncertainties, especially the rapid changes in geopolitics and conflicts, whose impact on fuel costs remains to be seen. DPP Legislator Chiu Chih-wei questioned the impact of CPC's natural gas price hikes in April and May, which are expected to increase Taipower's costs from May, on the direction of September's electricity prices and Taipower's financial status. Kung replied that stabilizing prices and ensuring Taipower's solvency are preconditions. The ministry will continue to monitor price changes, and all information will be provided to the Electricity Price Review Committee and the Executive Yuan. Tseng mentioned that if costs increase by more than NT$10 billion per month, electricity prices cannot fully cover it. He added that after oil prices rose in April and May, spot oil and Brent crude prices have since fallen. With some time still before the September price review meeting and the summer peak electricity consumption period approaching, they will continue to monitor energy price fluctuations. (Editor: Chang Liang-chi) 1150520