[Finance] Taipower: Stabilizing Prices and Curbing Inflation, Absorbing Over NT$600 Billion in Generation Costs

Regarding public concern over Taipower's financial situation, Taipower stated that following the Russia-Ukraine war, international fuel prices soared. To assist the government in caring for the public and stabilizing prices, Taipower has absorbed over NT$600 billion in electricity costs for residential and industrial use to date. This is the primary reason for recent losses and is unrelated to energy policy. Taipower will continue to seek financial improvement assistance from the government. Taipower announced today (17th) via press release that this year's conflicts in the Middle East have caused fluctuations in natural gas prices. Taipower assisted CPC Corporation (中油) in absorbing natural gas costs, bearing 50.92% of the price increase, necessitating increased external borrowing. Taipower emphasized that in line with the nation's rapid economic development, Taipower continues to plan and expand power source development and grid construction. However, large-scale investments such as various power construction projects require financial support. Taipower will continue to seek financial improvement assistance from the government. The American Chamber of Commerce in Taiwan's white paper this year listed "Energy and Infrastructure Resilience" as a priority issue, stating that ensuring sufficient energy supply and grid resilience should be considered national security issues. In response to the American Chamber of Commerce in Taiwan's concerns about power supply, Taipower explained that Taiwan's economy is booming, and the AI and high-tech industries have driven significant growth in electricity consumption. Taipower, in coordination with the government, continuously reviews power supply and demand. This year, four large-scale gas-fired units – Shindai New Units 2 & 3 and Taichung New Units 1 & 2 – will gradually come online, with a total installed capacity of 5.2 million kilowatts. Coupled with diverse dispatch measures such as renewable energy, pumped-storage hydropower, and load management, this will ensure an adequate supply of electricity for residential and industrial use. Regarding grid resilience, Taipower stated that it has planned the "Grid Resilience Enhancement Construction Plan," focusing on three main pillars: decentralization, strengthening, and defense. Power plants will directly supply industrial parks to ensure stable electricity for high-tech industries, leaving existing power trunk lines for residential needs. This also helps enhance the resilience of residential power supply, minimizing the impact of power outage incidents and preventing escalation. Taipower stated that stable electricity is a component of national security. Taiwan's important power plants are critical infrastructure. Security personnel have been increased, and protection drills are conducted regularly to ensure the stable operation of the power system when Taiwan faces various threats. (Editor: Liao Yiting)