TAIPEI (Taiwan News) — Taipower reported after-tax earnings of NT$72.9 billion (US$2.3 billion) last year, surpassing its 2015 profit of NT$61.7 billion to post its most profitable year on record and end three straight years of losses.
The company said that about NT$14 billion of its earnings last year came from investments and real estate rental income, with the rest generated by its power business, per CNA.
Taipower said that last year’s earnings will help offset accumulated losses of around NT$420 billion, mainly caused by soaring international fuel prices following the Russia-Ukraine war. Fuel costs for power generation in 2022 and 2023 reached about NT$600 billion, more than twice pre-war levels, the company added.
Taipower has not significantly raised electricity rates to help keep consumer prices stable, with losses covered by the company or partly offset by government subsidies. Since October, the company has raised household electricity rates, while industrial rates remain unchanged.
Taipower estimates that this year’s fuel costs will remain close to last year’s, giving the company a chance to continue staying profitable. The Ministry of Economic Affairs added that electricity rates are not expected to see major increases this year.
In 2023, the government provided Taipower with a NT$50 billion subsidy to help offset its losses. From 2023 to 2024, it allocated NT$250 billion to the company for power generation development and to enhance the resilience of the electricity grid.
Taipower has launched programs to strengthen the power grid, moving from centralized to distributed networks. The projects include supplying power directly to industrial zones, adding more substations, expanding green energy storage, and upgrading equipment to reduce blackout risks and restore power faster.
Among Taiwan’s state-owned enterprises, Taiwan Sugar also reported a record after-tax profit of NT$7.46 billion last year. In contrast, CPC Corp. posted a pre-tax loss of NT$9.1 billion, bringing its total losses to NT$80.4 billion. Taiwan Water Corp. also recorded a loss of NT$4.97 billion, resulting in a cumulative deficit of NT$9.21 billion.
