Taiwan Power posts first annual loss on fuel costs

Taiwan Power Co (Taipower, 台電), the nation's biggest electricity generator, said the company posted its first ever annual loss because of increased fuel costs.

The company lost NT$2.89 billion (US$87 million) last year, Taipower said on its Web site yesterday. This compared with a net income of NT$1.94 billion posted in 2005, Taiwan Stock Exchange data showed.

It was unable to pass on rising fuel costs to consumers because of government price controls. The Taipei-based company, which generates about 75 percent of the electricity the nation uses and monopolizes transmission, raised prices 5.8 percent in July, the first increase in 23 years.

Electricity sales climbed 3.6 percent last year to 181.6 billion kilowatt-hours, the company said. Sales to electronics companies were the highest, followed by steelmakers.