The Taiwan Electric Power Association pointed out today that "Taipower's current accumulated losses are the result of bearing international imported inflation on behalf of the entire people."
[Reporter Liao Jianing/Taipei Report] The Taiwan Electric Power Trade Union (Taiwan Electric Power Association) pointed out today (3rd) that "Taipower's current cumulative losses are the result of international imported inflation being borne on behalf of the whole people." If Taipower compares South Korea's electricity prices, from 2020 to In 2025, Taipower can create a cumulative surplus of more than 540 billion yuan, and it is estimated that by the end of 2026, it can create a cumulative surplus of more than 660 billion yuan. If compared with international oil price standards, Taipower's finances are not only stable, but can even create a surplus of 100 billion yuan immediately. The current electricity prices for people's livelihood are lower than those 20 years ago. The reason why nearly 90% of household users enjoy low electricity prices is Taipower's heavy financial burden.
The Taiwan Power Association pointed out that in recent years, Taipower's losses have mainly been caused by cooperating with policies and stabilizing people's livelihood and absorbing costs, rather than poor management. If it charges according to international standards, Taipower's finances will not only be stable, but can even create a surplus of hundreds of billions. Since Taipower has cooperated with policies to absorb costs and stabilize electricity prices, it is reasonable and reasonable for Taipower to receive subsidies from the government. It calls on the Legislative Yuan to pass the supplementary budget as soon as possible.
In response to recent social discussions on electricity prices and operations, the Taipower Labor Union made three points. First, electricity prices for people's livelihoods have long been lower than 20 years ago. Taipower has swallowed nearly 300 billion in housing subsidies. To take care of people's livelihood, Taiwan has maintained an extremely low electricity price benchmark for a long time. The current unit price of basic electricity for people's livelihood (below 330 kilowatt-hours) is even lower than 20 years ago. Taking the unit price of the first section of residential buildings as an example, in 2004 it was 2.10 yuan per kilowatt hour, but now it is only 1.78 yuan per kilowatt hour. Compared with the price increase in the past 22 years, there is a significant gap.
The Taipower Association stated that behind the low electricity prices enjoyed by the vast majority of civilian users (such as nearly 90% of household users with electricity consumption below 500 kilowatt-hours) is Taipower's heavy financial burden. From 2022 to September 2026 (during which it experienced the Ukraine-Russia war and the US-Iraq war), Taipower absorbed more than 280 billion yuan in losses just to "take care of people's livelihood (residential electricity)." If small shops and disadvantaged groups are included, the total amount of subsidies to stabilize prices exceeds 340 billion yuan.
The Taiwan Electric Power Association continued to point out that the second point is that if the electricity prices are compared with South Korea, Taipower can immediately create a surplus of 100 billion. "Taipower's current accumulated losses are the result of international imported inflation being borne on behalf of the whole people." In fact, if Taipower follows the charging standards of foreign electrical industry organizations, its revenue structure will be completely reversed. Taipower's labor union has signed a cooperation and exchange agreement with South Korea's National Electric Power Labor Union since 1971, regularly sharing the development of the country's power industry. Taking South Korea as an example, its residential and industrial electricity prices are higher than Taiwan's. If Taiwan comprehensively charges South Korea's electricity prices, Taipower will not only not suffer losses in 2023, but will create a surplus of about 30 billion yuan. If further extrapolated to 2024, Taiwan Power could earn as much as 150 billion yuan by adopting Korean electricity prices.
The Taipower Association continued that if further reference is made to South Korean electricity prices, Taipower can create a cumulative surplus of more than 540 billion yuan from 2020 to 2025, and it is estimated that by the end of 2026, it can create a cumulative surplus of more than 660 billion yuan. This proves that Taipower Corporation, with the joint efforts of labor and management, has a high degree of profitability and operating capabilities if it can reasonably reflect costs without coordinating policies.
The Taiwan Electric Power Association further pointed out that the government's preparation of budgets to subsidize electricity prices is a common practice in the world and is not unique to Taiwan. In the face of the energy crisis caused by global geopolitics so far in 2022, from the Russia-Ukraine war to the US-Iraq war, governments of various countries have also prepared fiscal budgets to subsidize electricity prices as an important supporting package. While reducing the burden on people's livelihood, the electricity industry can recover reasonable costs and take into account financial health.
Taking Germany as an example, it will implement an "electricity price brake system" from January to December 2023, with subsidies of approximately NT$520 billion; France will implement an "electricity price brake system" for residential and small businesses from February 2022 to January 2025. Dong", electricity subsidy is about NT$700 billion; Japan has also implemented multiple rounds of subsidies such as "measures to ease electricity and natural gas prices", "heat emergency assistance", "in response to the worsening situation in the Middle East", including January 2023 to In April 2024, the electricity subsidy will be approximately NT$550 billion, and in each period after May 2024 (the public budget includes natural gas subsidy), the total will exceed NT$560 billion, totaling approximately NT$1.1 trillion; Australia The "Energy Bill Relief Fund" (EBRF) will be implemented in three phases from July 2023 to December 2025, with the federal government and states investing a total of approximately NT$171.8 billion to reduce the electricity bill burden on households and small businesses. It can be seen that using the fiscal budget to share the impact of fuel costs is an important means for countries to respond to the energy crisis and stabilize people's livelihood and economy.
Finally, the Taiwan Power Association sincerely calls on the government and all political and opposition parties in the Legislative Yuan to "let us all break away from political offense and defense and face the necessity of Taipower's supplementary budget from a more macro and long-term perspective." This is not only a financial issue for Taipower, but also related to the job security of all employees, the inheritance of the power profession from generation to generation, and Taiwan's future power supply and industrial development. We sincerely ask all sectors of society to support Taipower’s 71.1 billion yuan supplementary budget for 2015 so that necessary resources can be provided in a timely manner.
The Taiwan Electric Power Association calls on us not to let policy costs drag down the company's operations, and not to let financial difficulties sacrifice employees' rights and interests. We ask all walks of life to support Taipower to continue to work hard for the public tasks assigned by the country, and to continue to provide stable and reliable power to people across the country.
