Burning $120 Billion Annually! State-Owned Enterprises Bear the Burden of Frozen Electricity and Fuel Prices – Ministry of Economic Affairs Proposes $220 Billion Subsidy for Taipower and CPC

The Executive Yuan is planning to propose a supplementary budget to provide financial assistance to Taipower and CPC. Minister of Economic Affairs Kung Ming-hsin stated on the 20th, in an interview, that due to the Middle East conflict, Taipower and CPC have absorbed significant costs. As a matter of policy, the Ministry aims to stabilize prices and protect people's livelihoods, and therefore hopes to submit a $220 billion subsidy to these two state-owned enterprises after confirmation by the Directorate-General of Budget, Accounting and Statistics.

The U.S.-Iran conflict has triggered a global surge in energy prices. According to statistics, Taipower incurs a monthly loss of $15 billion due to rising fuel costs, amounting to over $120 billion annually. CPC also bears the burden of keeping domestic fuel prices stable through long-term price freezes. Both state-owned enterprises hope the government will extend assistance to ensure stable operations.

Kung Ming-hsin, Minister of Economic Affairs, said before attending the MOEA executive meeting that the Executive Yuan is still conducting final comprehensive assessments regarding subsidies for state-owned enterprises like Taipower and CPC. In the past, such enterprises have shouldered the responsibility of stabilizing prices and protecting livelihoods, inevitably resulting in losses. After absorbing these costs for several months, the actual subsidy amount is still under discussion between MOEA and the Directorate-General of Budget, Accounting and Statistics, and will only be finalized after precise calculations.

When asked how much subsidy each company requires, Kung responded that Taipower estimates it will bear around $120 billion in fuel costs by year-end and hopes to receive sufficient support to avoid accumulating debt. CPC has similar expectations, and MOEA will strive to secure maximum assistance.

Notably, the new legislative session of the Legislative Yuan is about to begin. MOEA has listed the 'Energy Management Act' and the 'Business Merger and Acquisition Act' as priority bills. Kung explained that the revision of the 'Business Merger and Acquisition Act' will focus on providing substantial tax incentives. In the future, companies undergoing mergers or acquisitions certified by relevant authorities will enjoy tax deferral benefits, thereby enhancing corporate willingness to integrate.

Regarding the 'Energy Management Act', Kung explained that corporate responsibilities for 'large electricity users' will be gradually implemented. New or expanded factories and facilities must legally install power generation or energy storage equipment. The bill is currently under review, and MOEA hopes it will smoothly pass its third reading in the next session.