Taiwan’s Sole Power Utility Racks Up Second Year of Losses

(Bloomberg) -- Taiwan’s sole power utility reported major losses for a second consecutive year on rising fuel costs triggered by Russia’s invasion of Ukraine and high inflation.

Taiwan Power Co. reported a pre-tax loss of NT$198.5 billion ($6.3 billion) in 2023, following an even greater shortfall in 2022, according to the financial statements on its website. The losses in 2023 came despite a capital injection of NT$150 billion plus a subsidy of NT$50 billion from the government that year. Taipower forecasts another loss of NT$188.7 billion this year.

The state-owned utility, which is under pressure to keep tariffs low amid growing expenses, has been absorbing costs to avoid passing them on to the consumers. The government is providing continuous assistance to ensure its finances and people’s living costs remain stable, the company said in a statement on Monday.

©2024 Bloomberg L.P.