Taipei: 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.
According to Focus Taiwan, Taipower Vice President Tsai Chih-meng highlighted the growing financial burden on the company due to higher fuel costs, urging government intervention to relieve the pressure. Tsai explained that if current natural gas prices persist, Taipower's monthly fuel costs are projected to rise by NT$15 billion from August through December, culminating in additional fuel expenses exceeding NT$120 billion for the entirety of 2026.
Taipower spokesperson Huang Mei-lien reported that the company experienced a NT$42 billion increase in fuel costs during the first half of this year, resulting in a NT$25.7 billion loss over the six-month period and an accumulated loss of NT$376.4 billion.
When questioned about the potential request for NT$120 billion in supplementary government funding, Tsai noted that the Executive Yuan is expected to propose a budget for subsidies. However, the final decision rests with the Legislative Yuan. Tsai emphasized that these subsidies would aid Taipower's financial stability and help maintain price stability for both households and industries.
Taipower's website indicates that the average natural gas purchasing price for the first seven months of this year was NT$16.2910 per cubic meter before tax, compared to the 2025 average of NT$13.8013 per cubic meter before tax. Currently, Taipower operates five natural gas-fired power plants in Taiwan, including the Datan and Tungxiao plants in the north, and the Hsinta, Nanpu, and Dalin plants in the south.
The Energy Administration of the Ministry of Economic Affairs reported that Taipower's natural gas-fired power plants contributed 50.4 percent of the company's total electricity output in the first half of this year.