Fuel costs estimated to increase over NT$120 billion in 2026: Taipower

Taipei, Aug. 18 (CNA) State-owned Taiwan Power Co. (Taipower) said Tuesday that with tensions in the Middle East pushing up natural gas prices, the company's fuel costs for electricity generation are likely to increase by over NT$120 billion (US$3.77 billion) in 2026.

Speaking with reporters, Taipower Vice President Tsai Chih-meng (蔡志孟) said the higher fuel costs have increased the financial burden on the company, urging the government to provide support to ease the financial pressure.

Tsai said if natural gas prices for the power sector remain at current levels, Taipower's monthly fuel expenditure is expected to increase by NT$15 billion from August through December, increasing total added fuel costs by more than NT$120 billion for 2026 as a whole.

According to Taipower spokesperson Huang Mei-lien (黃美蓮), the company saw its fuel costs rise by NT$42 billion in the first half of this year, leading to a loss of NT$25.7 billion in the six-month period and an accumulated loss of NT$376.4 billion.

Asked whether Taipower is seeking to secure NT$120 billion in supplementary funding from the government to ease the financial burden, Tsai said the Executive Yuan is expected to propose a budget for the subsidies but the final say will come from the Legislative Yuan.

The subsidies will help Taipower's finances as well as maintain price stability for households and industry, Tsai added.

On its website, Taipower said the average purchasing price of natural gas in the first seven months of this year stood at NT$16.2910 per cubic meter before tax, compared with the average of NT$13.8013 per cubic meter before tax in 2025.

Currently, Taipower runs five natural gas fired power plants in Taiwan: the Datan power plant and Tungxiao power plant in the north, the Hsinta power plant, Nanpu power plant and Dalin power plant in the south.

According to the Energy Administration of the Ministry of Economic Affairs, Taipower's natural gas-fired power plants accounted for 50.4 percent of the company's total electricity output in the first half of this year.