Large Consumers, Individuals Fear Price Hikes After Taipower Budget Cut by US$3B

TaiwanPlus News

Large industrial users and household consumers alike are concerned about what a US$3 billion budget cut to Taiwan's state-owned power company, Taipower, could mean for electricity prices.

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00:00With each motion, these machines are making money for Taiwan's industries, but also consuming

00:07huge amounts of electricity.

00:10The cost to run them may increase soon, as the state-owned power company Taipower faces

00:14a US$3.1 billion hit to its budget for subsidies.

00:19Those extra funds had kept prices stable for big manufacturers and ordinary consumers alike.

00:25Now, large energy users are worried about what the higher cost of electricity could

00:29look like.

00:43Energy resilience is a major concern for the country, which imports nearly all of its energy.

00:48And Taipower says it needs the subsidies to replace old equipment, prevent outages and

00:53implement energy-efficient guidance.

00:55By the end of 2024, Taipower had accrued US$12.8 billion in losses, and opposition

01:02parties say the government is pursuing the wrong energy policy.

01:06Now with significant budget cuts, Taipower must decide where to slash spending.

01:11And while large electricity consumers may take a hit first, residential users are worried

01:16about potential price hikes too.

01:25But others had mixed feelings about the cuts and their potential impact.

01:55The chair of Taiwanese electronics manufacturer Pegatron suggests bringing back nuclear power

02:16to take care of the country's energy needs.

02:19But nuclear is a non-renewable energy source that the ruling Democratic Progressive Party

02:23has been trying to wean the country off of, and the last reactor is scheduled to shut

02:27down in May.

02:29Some environmental researchers say a return to nuclear could set the country back on its

02:33energy goals to achieve a mix of natural gas, coal and renewable sources, or even increase

02:39costs in the long run.

02:52The government has been phasing out nuclear reactors in accordance with a rule that only

02:56grants them a 40-year operating license.

02:59And Taipower says extending the one for the final nuclear reactor is not an option.

03:05With the impact of the budget cuts on consumers yet to be decided, Taipower and the government

03:09will need to keep searching for solutions to the country's energy woes.

03:13Andy Xue and Tiffany Wong for Taiwan Plus.

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