Alexa
  • Directory of Taiwan

Losses at Taipower expected into next year: economics minister

Losses at Taipower expected into next year: economics minister

Taipei, May 2 (CNA) State-run utility Taiwan Power Co. (Taipower) is expected to suffer losses into next year after the government decided to introduce power rate hikes in three stages rather than all at once, Economics Minister Shih Yen-shiang said Wednesday. Taipower is expected to lose NT$72.2 billion (US$2.48 billion) this year, which would push accumulated losses to NT$190.1 billion by the end of 2012, Shih said on the sidelines of a Legislative Yuan hearing. According to initial calculations, the nation's sole power supplier will lose another NT$26.9 billion in 2013 based on the three-stage plan to raise electricity rates, he said. Although the power company will still face losses, the government decided on orienting its policy more toward the interests of consumers, the minister said. Shih's remarks came after President Ma Ying-jeou announced the new policy late Tuesday. Under the plan, the government will implement electricity rate hikes in three stages, with the first and second stages coming on June 10 and Dec. 10, respectively. The date for the third stage will only be determined after the government takes into account how the state-run power company has carried out reforms, Ma said. The ministry announced last month that household, commercial and industrial electricity rates were to increase by an average of 16.9 percent, 30 percent and 35 percent, respectively, taking effect on May 15. The president said that when the first stage of the revised plan goes into effect June 10, rates for households will rise by 6.76 percent -- or 40 percent of the original plan. Rates will go up by the same amount in the second stage on Dec. 10, and the third-stage 20 percent hike will not be implemented until Taipower undertakes acceptable reforms. The revised plan will reduce the impact of the rate hikes on local households and businesses, and thus allow the inflation rate to be kept below 2 percent in 2012, Economics Minister Shih said. (By James Lee)


Updated : 2021-05-19 07:13 GMT+08:00