State-run Taiwan Power Co (Taipower, 台電) yesterday said it has achieved the cost reduction and profit targets it had set in its business overhaul plans.
The company said it had trimmed NT$5.9 billion (US$199 million) from its expenditure and made NT$600 million more in profit as of the end of last month, surpassing its original targets of cutting NT$3 billion from its costs and making NT$500 million more in profit.
With regard to the company’s lawsuits against independent power producers Kuo Kuang Power Co (國光), Star Energy Corp (星能), Sun Ba Power Corp (森霸) and Hsing-yuan Power Corp (星元) over electricity sales contracts, Taipower said the cases were still pending at the Taipei District Court.
However, Taipower added that the two sides were in the process of renegotiating contract details.
Based on its own estimate, Taipower could reduce its purchase costs by as much as NT$900 million every year once the parties reach an agreement on the contract details.
At the end of May, Taipower reported NT$179.9 billion in accumulated losses since 2006 due to increasing global energy prices and fuel costs.
The company yesterday said it had adjusted its policy on engaging in long-term contracts and purchasing raw materials from spot markets, hoping the move would give it more flexibility in controling costs.
In addition, Taipower said it had cut NT$900 million in inventories, adding that it would monitor its inventory more carefully in the future.