TAIPEI (Taiwan News) — Environment Vice Minister Lien Ching-chang (連錦漳) discussed Wednesday the possibility of Taipower either increasing its debt or raising electricity rates to address a budget shortfall.
Lien acknowledged that raising electricity rates would be a significant challenge and noted that Taipower had limited ability to take on additional debt, per CNA. When asked by DPP Legislator Lee Kuen-cheng (李坤城) whether Taipower could face bankruptcy, Lien reassured lawmakers this would not happen.
Lien emphasized the company is exploring solutions to reduce its budget gap, including asset restructuring.
The KMT has been critical of Taipower's energy policy, per UDN. KMT Legislative Caucus Secretary-General Lin Szu-ming (林思銘) said Thursday the party would withhold Taipower's supplementary budget for the 2023 fiscal year and amending budget for 2024, amounting to NT$ 200 billion (US$6 billion).
Lin cited Taipower's refusal to revise what the KMT views as flawed energy policies as the primary reason for withholding funding. He argued that unless Taipower alters its energy strategy, the government would need to allocate increasing amounts of money each year to support the company.
KMT Legislator Wang Hong-wei (王鴻薇) added that Taipower’s failure to provide a more detailed explanation of the financial burden of purchasing green energy led the party to withhold the supplementary and amending budget.
In response, Taipower defended its actions on Monday, explaining the financial strain it bears to maintain Taiwan’s relatively low electricity rates, per a Taipower statement. The company pointed out that most countries experienced significant electricity rate hikes between 2020 and 2023, while Taipower has spent around NT$80 billion annually from 2022 to 2024 to keep rates stable.
Taipower also addressed rumors suggesting it might raise electricity rates by 7%, clarifying that there are no such plans at present.
However, a source within the KMT caucus revealed Wednesday that while the party is inclined to cut the supplementary and amending budgets, there may still be room for a partial reduction if Taipower provides a clearer explanation of its energy policies, per NOWnews.
Lin reiterated his criticism of Taipower’s energy strategy, accusing the green energy industry of siphoning funds from the company. He said, “The DPP government has failed to prevent Taipower from incurring losses, so it is up to the KMT to turn things around.”
Lin also urged Taipower to refrain from using the threat of higher power rates to coerce the public into accepting its financial challenges.