TAIPEI (Taiwan News) — Taiwan Power Company posted Friday losses of NT$451.4 billion (US$15.52 billion) for the first five months of the year, with officials warning that a shareholder buyback is off the table until its finances recover at its annual shareholders meeting. 

Some minority shareholders are hoping Taipower will buy back privately held shares, but Taipower Vice President Tsai Chih-meng (蔡志孟) explained that the economics ministry has made clear the issue should only be considered once finances recover, per CNA.

Taipower has been affected by high international fuel costs since Russia’s invasion of Ukraine, absorbing nearly NT$600 billion in household and industrial electricity expenses over the past three years. Last year, it posted NT$871.4 billion in revenue against NT$912.5 billion in spending, ending the year with an after-tax loss of NT$41.1 billion.

Despite these results, the electricity rate review committee froze rates in April to ease global trade and tariff concerns. Taipower, meanwhile, has vowed to keep pressing lawmakers for subsidies while taking steps to bolster its financial performance.

One measure is scaling back electricity discounts for schools and social welfare organizations in line with the Electricity Act, returning those costs to the budgets of responsible agencies. This shift is expected to add about NT$4 billion to Taipower’s revenue annually.

There is concern that Taipower’s deficits could affect electricity prices in the second half of the year. Tsai noted the company has already booked high losses and does not expect to break even by year-end, though rate adjustments will remain under the review committee’s control.