Taiwan to Decide on Power Tariff Hikes That Would Hit Chipmakers

(Bloomberg) -- Taiwan’s government will decide on potential power tariff increases after confirming the level of subsidies to be allocated to the country’s loss-making utility Taiwan Power Co., Economic Minister Wang Mei-hua told lawmakers.

State-run Taipower reported a loss of NT$198.5 billion ($6.3 billion) in 2023 and the electricity supplier should aim to break even this year with government support, the minister told a legislative session Thursday.

Electricity prices for high voltage users could jump by more than 10% from April with Taiwan’s semiconductor sector, a major power consumer, likely to be impacted most, Economic Daily News reported last month, citing sources it didn’t name.

A price review committee convened under the economic ministry is scheduled to discuss power rates this month.

Taipower, which has been absorbing higher fuel costs to avoid passing them on to consumers, said in January it forecasts an annual loss this year of NT$188.7 billion.

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