Middle East conflicts drive Taipower's NT$4.7 billion April deficit

Taipei, May 30 (CNA) Taiwan Power Co. (Taipower) posted a pre-tax deficit of NT$4.7 billion (US$149 million) in April, as conflicts in the Middle East pushed up fuel expenses, according to the state-run utility's latest financial statement updated on Friday.

Taipower said the primary cause of the deficit was a surge in liquefied natural gas (LNG) fuel costs charged by CPC Corp., which increased the utility's power generation costs by NT$10 billion, compared to the previous month.

The state-owned oil company raised natural gas prices for utility consumers such as Taipower by 41.58 percent in April, citing a surge in global LNG spot prices that reached their highest level in nearly three years amid the war in the Middle East.

In April alone, Taipower recorded a deficit of NT$4.7 billion, surpassing the NT$4.3 billion deficit reported for the entire first quarter.

CPC again raised the gas price for electricity for utility consumers in May, by 9.34 percent.

After that, Taipower said its fuel expenses are estimated to increase to NT$13 billion each month.

According to the latest financial report, Taipower's accumulated deficit since its founding has reached NT$361.9 billion, with a debt ratio of 91.3 percent.

Fluctuations in international fuel prices have been a primary cause of Taipower's debt, which surpassed NT$400 billion between 2022, the year the Russia-Ukraine war began, and 2024.

Since 2022, the government has proposed NT$250 billion in financial support for Taipower, though such measures have faced opposition in the opposition-controlled Legislature over the past two years.