Taipower forecasts fuel costs to rise by more than NT$160 billion — Taipei Times

Taiwan’s state-owned energy company Taiwan Power Co (Taipower) forecasts that its fuel costs will increase by more than NT$160 billion (US$4.92 billion) this year due to rising natural gas prices amid tensions in the Middle East. Taipei Times reported this, citing a company statement.

Gas costs

Taipower Accounting Department Director General Tang Hui-lien said that if current gas prices remain in place through the end of the year, the company’s fuel costs will be NT$160 billion higher than before the start of the conflict in the Middle East.

Taipower said that after the outbreak of the war, which the publication links to US and Israeli strikes on Iran in late February, natural gas prices for electricity generation rose by more than 70%. This added NT$71.1 billion to the company’s fuel costs from March through August.

Losses and tariffs

Taipower estimates that higher fuel costs will increase its accumulated losses this year by NT$70 billion, to NT$420 billion. This is nearly in line with the record NT$421.1 billion recorded at the end of 2024.

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The company attributes the losses to high fuel costs and electricity tariffs below cost. An additional burden is NT$1.85 trillion in loans raised for infrastructure projects: debt servicing costs this year are expected to reach NT$30 billion.

Taipower has not raised tariffs since September last year, when the average tariff was increased by 0.71%. The government also declined to revise tariffs in March and last month, with the next review scheduled for December. At the previous meeting, the company proposed raising tariffs by 12.83% due to higher fuel costs.

Taipower’s management also called for support for the Cabinet’s proposed additional NT$71.1 billion budget to cover the company’s growing losses. The document is awaiting consideration by lawmakers.