After successfully brewing new tastes for Taiwan Tobacco and Liquor Corp (
"The easiest way to earn profits, of course, is by hiking electricity fees," Hwang told reporters after the handover ceremony. "But price adjustment is a government policy, and Taipower is merely a planning and executive institution."
Taiwan imports almost 98 percent of its energy needs, and heavily depends on thermal power fueled by coal. Surging coal prices forced Taipower, which used to be the most profitable state-owned business, to report a deficit this year for the first time.
For the first five months of this year, Taipower lost NT$4.18 billion (US$131 million) in pre-tax income, compared with a deficit of NT$1.37 billion a year ago. The company, which saw NT$6.9 billion in revenue last year, is expected to report a loss of NT$9 billion this year.
Increasing fuel costs, however, have not been reflected in prices, said Edward Chen (
While admitting that comparatively low electricity fees cause improper use of energy, Hwang said summer was not a good time to raise the rates as users already pay more during the summer.
The proper time for the company to adjust the rates may have to wait "until the utility fees [paid by consumers] start to slide from the high levels," Hwang said.
Premier Frank Hsieh (
Although no specific timeframe or range for hikes has been set so far, the proposed price adjustment is not expected to heavily impact on industries and consumers, Hwang said.
Another challenge for Hwang comes from the nation's energy supply structure, as the government has vowed to cut carbon dioxide emissions in accordance with the Kyoto Protocol that took effect in February.
To effectively reduce emissions, one viable solution is to increase the application of nuclear power, but the safety of such a move is a still major concern.
In response to the issue, Hwang said the company needs to thoroughly weigh the advantages and disadvantages of nuclear power. As the government has purchased and is constructing the Fourth Nuclear Power Plant, Taipower has no reason to let the facility run idle, Hwang said.
Through enhancing management of the plants and taking care of nuclear waste, Hwang believes the public's fear of nuclear power will be reduced over time.
Hwang further shrugged off doubts about his qualifications to run a company that requires high expertise in the energy field, saying Taipower already has abundant professionals who specialize in electrical engineering, and that his specialty in management would have a complementary effect and further enhance the company's efficiency.
Indeed, with so many skilled professionals in hydropower development, Vice Minister of Economic Affairs Steve Chen (陳瑞隆) has suggested that Taipower should invest in Central and South American countries that are developing their own hydropower projects.
"The investment will help Taipower to make money, as well as to consolidate friendship with our diplomatic allies there," said Chen, who also attended Hwang's swearing-in ceremony yesterday.
"If these investments were profitable, Taipower would probably not have to raise electricity rates too high," he added.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01