The state-owned Taiwan Power Company said Thursday that electricity prices need to be raised to stop the company from operating at a loss.
Taipower introduced a new electricity pricing policy in October 2017. The policy allows the company to negotiate a price increase of up to 3% in April and October every year.
The proposed increase needs to be approved by the electricity price review committee before taking effect. In March, the committee rejected Taipower’s proposal to increase the electricity rate by 10.4% and limited the raise to 3%.
Taipower said that a number of factors have contributed to the climbing operating cost. They include high international oil prices, and record high electricity usage, driven by record high temperatures. The company said it has seen a loss of NT$24 billion (US$ 800 million) in the first half of the year, adding to an accumulated loss of NT$ 153 billion (US$ 5.1 billion).
The company said that its stabilization fund can help but electricity prices need to be raised to reduce the company’s long term losses.