TAIPEI (Taiwan News) — The Cabinet will allocate NT$100 billion (US$3 billion) for 2025’s budget to prevent Taiwan Power Company (Taipower) from filing for bankruptcy.

In addition to raising electricity rates, NT$250 billion in recapitalization funds has been allocated, along with NT$50 billion provided under a post-pandemic special act, CNA reported on Tuesday (Aug. 13). An extra NT$100 billion is expected to be allocated to Taipower in the 2024 supplementary budget, totaling NT$500 billion in funds.

Taipower and the Ministry of Economic Affairs (MOEA) have repeatedly emphasized that if the Cabinet approves these allocations on time, Taipower might avoid further losses this year.

With the rise in international energy prices, Taipower has taken on the responsibility of stabilizing prices, leading to a deficit. As of the end of 2023, the company’s accumulated losses had surged to NT$382.6 billion.

However, with a capital of NT$580 billion, even if Taipower breaks even this year, the company may still face bankruptcy due to severe accumulated losses, per UDN. According to the Company Act, if a company's assets are insufficient to cover its liabilities, the board of directors must file for bankruptcy.

The MOEA said Taipower plays a crucial role in Taiwan’s energy transition, and with these funds, it can help achieve net zero emissions.