Thu, Aug 29, 2013 - Page 13 News List

Taipower defends itself against ‘Next’

COUNTERATTACK:Taipower’s chairman said that the utility was working on fixing its financial structure, but it needed to raise electricity rates again to cover losses

By Helen Ku  /  Staff reporter

Advanced Semiconductor Engineering Inc (ASE, 日月光半導體), the world’s biggest chip packager and tester, said the rate hike, is expected to cut its gross margin by about 0.2 percentage points.

Even though the rate hike will be lower than expected, the increase will still have an impact on operations, ASE said. Electricity rates account for 3.5 percent to 4 percent of its total operating costs.

Siliconware Precision Industries Co (矽品精密) also expects the higher rates to increase its operating costs, as electricity bills make up about 3.5 percent of its total costs. It did not give further details.

China Steel Corp (中鋼) said that based on an 11 percent hike, it will be paying between NT$2.78 and NT$3.1 per kilowatt hour more, which means it might have to spend an additional NT$200 million on electricity for the fourth quarter. That would raise its operating costs for next year by almost NT$800 million.

Feng Hsin Iron and Steel (豐興鋼鐵) said it pays about NT$200 million per month for electricity and the higher rates would add NT$20 million per month to its bill.

Additional reporting by CNA

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