TAIPEI–State-run utility Taiwan Power Company (Taipower) will lose an estimated NT$80.2 billion (US$2.67 billion) in 2012, the company’s chairman said Wednesday, despite a phased-in hike in electricity rates that began in June.
Hwang Jung-chiou said the deficit would increase the company’s accumulated losses to NT$210 billion by the end of the year, and he also expected Taipower to operate in the red next year because of uncertainty in the international fuel market.
In the first six months of the year, Taipower lost NT$71.4 billion, which included a NT$13.6 billion charge for deferred tax assets, to bring its accumulated losses to NT$189.3 billion as of June 30.
Hwang said the two-phase increase in electricity rates would help narrow the NT$117.6 billion in losses the company forecast for 2012 by about NT$37.4 billion.
The first phase of the price adjustment occurred on June 10, and the second phase will take effect on Dec. 10.