State power firm, oil refinery in heavy deficits


CNA

TAIPEI, Taiwan — Taiwan Power Co. (Taipower) registered accumulated deficits of NT$83.2 billion (US$2.59 billion) in the first eight months of this year, while the petroleum refinery CPC Corp., Taiwan (CPC) incurred deficits of NT$59.1 billion in the same period, according to statistics released Saturday by the Ministry of Economic Affairs (MOEA).

Ministry officials estimated that the deficits of the two state-run companies will expand further by the end of the year due to increases in raw material costs, including coal and crude oil, on the international market.

The companies have not increased their prices to levels that truly reflect the surging costs, constrained by the government’s policies of maintaining stability in consumer prices and taking care of the well-being of the public, the MOEA said in a statement.

Taipower has assessed that the company will be faced with a deficit of up to NT$100 billion this year.

Although electricity prices were raised July 1 and again Oct. 1 under the Executive Yuan’s two-phase adjustment policy, the scale of the adjustments have been enough to cover only half the company’s cost increases, according to Taipower officials.

The statistics show that all MOEA-owned enterprises, except Taipower and CPC, had generated profits this year as of Aug. 31, which include profits of NT$14.79 billion for the Taiwan Sugar Corp., NT$422 million for the Taiwan Water Corp., NT$2.02 billion for the shipbuilder CSBC Corp., Taiwan and NT$54 million for the Aerospace Industrial Development Corp.