Taipei, May 15 — In a significant move to bolster Taiwan’s energy sector, eight major business groups have called on all political parties to unite in support of a government initiative to allocate NT$100 billion (approximately US$3.31 billion) to Taiwan Power Co. (Taipower). This funding is aimed at stabilizing electricity rates and alleviating the financial burdens faced by businesses amid rising U.S. tariffs and fluctuating exchange rates.

Key Takeaways

• Eight business groups advocate for NT$100 billion funding for Taipower.
• The funding aims to stabilize electricity rates and support industrial development.
• Concerns raised over Taipower’s ongoing financial losses impacting the economy.
• The proposal was previously rejected by the opposition Kuomintang party.

The Need for Support

The joint statement from the business groups emphasizes that the proposed NT$100 billion budget is crucial for protecting industrial development and serving the public interest. They argue that this financial support will not only alleviate the financial strain on businesses but also help mitigate fluctuations in commodity prices, which can have a ripple effect on the economy.

The groups have urged the government to ensure that Taipower is effectively supervised to maintain a stable power supply and to develop diversified energy strategies. They highlighted that continued heavy losses at Taipower could have detrimental effects on both national and industrial economic development.

Background of the Proposal

In late April, the Taiwanese Cabinet introduced a special bill amounting to NT$410 billion in response to U.S. President Donald Trump’s reciprocal tariff policy. This bill included the NT$100 billion allocation for Taipower to cover its operating losses from the past three years. However, the proposal faced opposition from the Kuomintang (KMT), Taiwan’s main opposition party, which rejected the funding plan.

KMT caucus whip Fu Kun-chi suggested that subsidies for Taipower could be proposed separately through a standard supplementary budget or another legislative process, indicating a willingness to discuss the issue but not in the form initially proposed by the government.

Voices from the Business Community

The eight business groups advocating for this funding include:

• Chinese National Federation of Industries
• General Chamber of Commerce of the Republic of China
• Chinese National Association of Industry and Commerce, Taiwan
• National Association of Small & Medium Enterprises
• Manufacturers United General Association of Industrial Park of ROC
• Taiwan Electrical and Electronic Manufacturers’ Association
• Taiwan Federation of Industry
• Taiwan Chamber of Commerce and Industry

These organizations represent a broad spectrum of Taiwan’s industrial and commercial sectors, underscoring the widespread concern regarding the stability of electricity supply and its impact on economic growth.

Conclusion

As Taiwan navigates the complexities of international trade and domestic energy needs, the call for bipartisan support for Taipower’s funding plan highlights the critical intersection of energy policy and economic stability. The outcome of this initiative could play a pivotal role in shaping the future of Taiwan’s industrial landscape and its ability to compete in a challenging global market.

Sources

• Business groups urge cross-party support for Taipower NT$100 billion plan, Focus Taiwan.