[Finance] Taipower Plans to Borrow NT$300 Billion from 8 State-Owned Banks; Kung Ming-hsin Confirms: To Meet Short-Term Financing Needs

Reuters reported that Taiwan Power Company (Taipower) will follow the model of CPC Corporation, Taiwan (CPC) and obtain a NT$300 billion project loan from 8 state-owned banks. Minister of Economic Affairs Kung Ming-hsin confirmed in an interview before attending the Economic Committee of the Legislative Yuan today (17th) that the loan is mainly for short-term financing and energy procurement needs, and is operational capital, not a fundamental solution to financial structure problems. The Ministry of Economic Affairs will continue to seek government appropriations or capital increases. #Listen to reporter Yang Wen-chun's report# Kung Ming-hsin stated that Taipower shoulders policy tasks such as "ensuring power supply," "caring for livelihoods," and "assisting in stabilizing prices." The electricity price for residential use has long been lower than the cost of power generation. From the COVID-19 pandemic, the Russia-Ukraine war, to recent international geopolitical conflicts that have driven up energy prices, Taipower has operated in accordance with relevant principles, thus accumulating a certain degree of loss. Regarding the impact of this project loan on Taipower's finances and whether it will help stabilize electricity prices, Kung Ming-hsin pointed out that this loan is greatly appreciated by the Executive Yuan and the Ministry of Finance for their assistance. The relevant measures comply with banking credit principles, and the public need not worry. He said: "(Original sound) The demand for funds is mainly for short-term financing, because it requires a large amount of capital for energy procurement, so there will naturally be a demand for revolving funds." Kung Ming-hsin also emphasized that this NT$300 billion loan is for operational working capital, not a structural financial improvement plan. To solve structural financial problems, capital injection or capital increase is still necessary. Regarding whether government appropriations or capital increases will be sought in the future, Kung Ming-hsin stated that the Ministry of Economic Affairs has always held this expectation. Although the Legislative Yuan has different views on related issues, given Taipower's role in ensuring power supply stability and caring for livelihoods, relevant support measures are still necessary. Media also asked if the restart of nuclear power would help improve Taipower's finances. In response, Kung Ming-hsin pointed out that the nuclear power units are currently undergoing an independent safety review process at the Atomic Energy Council, and the results are not yet clear. However, even if they are successfully restarted in the future, the effect may be limited, as the proportion of nuclear power in the overall power generation structure has been gradually declining. In addition, regarding the American Chamber of Commerce's suggestion that Taiwan should elevate energy and electricity security to the level of national security, Kung Ming-hsin said that the government has been promoting this direction for a long time, including listing power plants as critical infrastructure, strengthening security and drills, and allocating budgets to enhance grid resilience and promote distributed power generation layout to strengthen energy security. (Editor: Chung Chin-lung)