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Officials repeat: there will be no power shortfall

Above the noise of political clamor the embattled government continued over the weekend to stress there will be no electricity shortfall in a future without the Fourth Nuclear Power Plant as a major US business group voiced concern over the nation's power situation and urged fair compensation for companies involved in building the plant.

On Saturday, the day after Premier Chang Chun-hsiung (張俊雄) dropped the bomb on the nuclear plant's construction, the Government Information Office (新聞局) released a statement reiterating previous claims by both the Ministry of Economic Affairs (經濟部) and Taiwan Power Co (台電) that there would be "no power shortfall in northern Taiwan."

The office once again outlined its measures to boost power in the north, such as strengthening the establishment and maintenance of power transmission and distribution lines, further opening liberalizing the power generation market and actively developing renewable energy sources.

The statement also backed up previous government claims that seven companies -- including Taipower's Tatan plant -- had been approved or had shown interest in supplying a total of between 6,520 megawatts and 7,860 megawatts of power to northern Taiwan commencing sometime between 2002 and 2006.

Of this power, 2,500 megawatts would be funneled through the two northern high-voltage transmission stations Lungtan (龍潭) and Tinghu (頂湖), according to the statement, offsetting the 2,700 megawatt deficit left by cancellation of the nuclear plant.

But it remains to be seen whether the assurances of a stable power supply in the future and the intention to further the liberalization process assuages the concerns of foreign businesses with interests in Taiwan.

Frank Carlucci, chairman of the Washington-based US-ROC Business Council over the weekend joined the gathering number of voices among foreign businesses urging quick action by the government to ensure a stable supply of electricity and fair compensation for companies involved in construction of the cancelled plant.

The council will be keeping a "close eye on the government's initiatives to address shortfalls ... in Taiwan's energy production," Carlucci said in a written statement released over the weekend.

"Adequate and reliable power generation is critically important if Taiwan is to continue to develop as an information-based economy," Carlucci said.

Carlucci also said that now that the plant has been cancelled, foreign businesses would be watching the government's hand-ling of compensation to companies involved in construction of the plant.

"We do feel that the manner and speed in which the Taiwan government moves to compensate the companies involved is important," he said.

Taipower has said that it would be liable to pay out somewhere between NT$30 billion and NT$90 billion in compensation to companies contracted to build the plant and its equipment.

"We encourage the government to expedite the process of remuneration and thereby, assure the business community in Taiwan and the international community abroad that they are committed to meeting contractual obligations in good faith," Carlucci said.
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