Taipower is looking at operating losses of NT$200 million this year due to soaring fuel prices. It will convene a price adjustment review meeting on June 27, with expectations of a price hike being announced for July.
Thomas Wu, Chair, Taishin Holdings: “”
Lin Por-fong, Chair, Chinese National Association of Industry and Commerce: “”
Do you want to become the board chair? We have to have a general meeting. (You'll win) for sure. (You'll win) for sure.
The Chinese National Association of Industry and Commerce will elect a new chair soon, and current Chair Lin Por-fong believes Taishin Holdings Chair Thomas Wu will succeed him. Lin has been an outspoken critic of the government's plan to hike electricity prices for only major users, saying a price hike should apply to everyone.
Lin Por-fong, Chair, Chinese National Association of Industry and Commerce: “If the government only hikes prices for major users, it is punishing them. Is it any wonder the manufacturing industry is leaving?”
Lin also says a maximum hike of 3 percent would not have any effect on Taipower's financial problems and a hike should be implemented in stages due to Taiwan's stifling inflationary pressure. I-mei Foods Chair Henry Kao, meanwhile, says it is reasonable that electricity prices reflect cost as electricity accounts for only a small percentage of corporate operating costs.
Henry Kao, Chair, I-mei Foods: “If you don't raise (electricity prices) and Taipower suffers losses of hundreds of billions of NT dollars, it would not be great for tax collection, budgets or the economy.”
Taipower says losses are piling up for every kilowatt-hour sold and consumption is rising with temperatures. The company is expecting energy usage to hit an all-time high on the 21st, which will trigger a "yellow" operating reserve margin warning.
Wu Chin-chung, Spokesperson, Taipower: “Combined cycle generators at Datan, which have a capacity of 740,000 kilowatts, are undergoing maintenance. Taichung Power Plant's No. 5 generator and Linkou's No. 2 generators are undergoing repairs. Today's operating reserve is slightly low at around 10 percent.”
Taipower says its price review committee will take consumer prices and fuel costs into consideration to come up with an "appropriate" adjustment.