Taipei,Sept.13,2012(CENS)--The Ministry of Economic Affairs(MOEA)is seriously evaluating whether to suspend the second-stage power-rate hike scheduled for December,said Shih Yien-shiang,economics minister,yesterday(Sept.12).
The statement was made in response to the calls of many legislators to shelve the second-stage power-rate hike.
At a press conference in May,President Ma Ying-jeou announced three-stage power-rate hikes,instead of rate hike in one fell swoop.In the first stage,power rates will be raised by 40%of the original hike scale from June 10 and in the second stage,power rates will be raised by another 40%from December 10.Whether the remaining 20%hike will be carried out will hinge on the improvement of the performance of Taiwan Power Company.
Due to sluggish economy,power supply in August decreased by 1.4 billion kilowatts/hour than original expectation but Taipower racked up profit of NT$4 billion in the month,compared with expected loss of NT$2.6 billion.In other words,there appeared a strange phenomenon in which Taipower suffers higher loss by selling more power and records less loss,even profits,by selling less power.Taipower,therefore,revised downward its estimated loss to NT$76.8 billion,from the original level of NT$83.7 billion.
As of the end last year,Taipower had incurred accumulated loss of NT$117.8 billion,which will climb to NT$208.2 billion by the end of this year.Li Han-shen,president of Taipower,stressed that the aforementioned loss is based on the smooth implementation of the second-stage power hike.Even the second-stage power hike is carried out,Taipower will still suffer NT$23 billion of loss next year.
Li Han-shen pointed out that assuming fuel prices remain unchanged,the cancellation of the second-stage power hike will increase the company's loss by NT$2.5 billion this year and its loss will be expanded to NT$81 billion next year.As of the end next years,the company's accumulated loss will top NT$291.7 billion,compared with its paid-in capital of NT$330 billion.
Shih Yien-shiang noted that Taipower is a state firm and its loss will be borne by the national treasury eventually,which is equivalent to the burden on all the local people.The different is whether to face the problem now or next year,according to Shih.
(by Philip Liu)