Taipower has been absorbing annual losses of between NT$4 billion and NT$5 billion for the outlying islands, Shih told the legislature’s Economics Committee as it was discussing the impending electricity rate hike.
It costs NT$14 on average to generate a kilowatt hour of electricity on Matsu compared with about NT$2 for Taiwan proper, the minister said. In Penghu, the cost is NT$8 and on Kinmen it is NT$10, he said.
“The [company’s] losses in those areas are not small,” Shih said. “The deficit should be subsidized by the government, and we can discuss how to source the funds for it.”
Additional reporting by CNA