February 23, 2024 – Taipower held its 2024 extraordinary general meeting today and approved the plan for a NT$100.1 billion private placement to increase capital. The plan was recognized by the Ministry of Economic Affairs through a private placement of common stock, raising the paid-in capital to NT$580 billion. Taipower stated that this capital increase plan was included in the 2024 central government general budget, which passed the third reading by the Legislative Yuan in December 2023. Taipower hopes that government investment in stable power supply construction will accelerate the implementation of the energy diversification development plan, thereby enhancing the resilience of the national power grid while continuing to meet the electricity needs of the public.

• Taipower formulated the “Stable Power Supply Construction Program” capital increase plan to seek government investment. The plan was approved by the Ministry of Economic Affairs and passed at today’s shareholders meeting. It will be independently recognized by the Ministry of Economic Affairs, and subsequent cash capital increases will be processed according to relevant private placement regulations.

Taipower pointed out that, to ensure a stable power supply, it formulated the “Stable Power Supply Construction Program” capital increase plan to seek government investment. This fiscal year, a budget of NT$100 billion for Taipower’s capital increase was included in the Ministry of Economic Affairs’ unit budget as part of the central government’s general budget proposal. Additionally, there was an unspent budget of NT$1 billion from last year’s capital increase budget, which was consolidated for this year’s cash capital increase, resulting in the issuance of NT$100.1 billion in new shares. This plan was approved by the Ministry of Economic Affairs and passed at today’s shareholders meeting. It will be independently recognized by the Ministry of Economic Affairs, and subsequent cash capital increases will be processed according to relevant private placement regulations.

Taipower stated that the Russo–Ukraine war has caused a surge in global fuel prices. Taipower’s purchasing cost for electricity fuel has exceeded NT$600 billion for 2 consecutive years, which is more than double the previous cost. Hypothetically, even using the power generation structure from 2015, with had a nuclear energy ratio of 16%, costs would still reach nearly $600 billion due to the current fuel prices. The cost of electricity sold per unit has risen to nearly NT$4, highlighting that the significant increase in fuel costs remains the primary cause of losses.

Regarding the stance of some private shareholders, Taipower expressed understanding and respect. However, as Taiwan’s national power company, when faced with the surge in fuel prices and the inflationary wave brought about by the Russio–Ukraine war, Taipower has assumed the policy mission of mitigating inflation and stands at the forefront as a buffer. The government also supports Taipower’s operations through comprehensive measures such as capital increases, injection of special budgets, and appropriate adjustments to electricity prices. Taipower will also do its best to improve its financial situation, aiming to generate profits to return to its shareholders.

Taipower emphasized that the sustainable financial operation of the electricity industry is closely related to public interests in electricity usage and the country’s economic development. Therefore, Taipower has adopted international best practices and sought government capital injection. This capital increase is expected to raise the total paid-in capital to NT$580 billion, which will be allocated to meet the needs of stable power supply construction, including power source development and enhancing the resilience of power grids. The injection of funds will enhance the financial structure. Taipower will continue to improve its fuel procurement strategy, cut expenses in various areas, and pursue reasonable electricity price adjustments. It actively seeks to generate revenue and reduce expenses, aiming to benefit people’s lives, support the economy, and ensure a stable power supply.

Spokesperson: Vice President Chih-Meng Tsai

Contact Number: (02)2366-6271/0958-749-333

E-mail: u910707@taipower.com.tw

Contact Person: Shou-Fu Zheng, Chief Secretary, Board of Directors' Secretariat

Telephone: (02)2366-6210/0900-781-357

Email: u026726@taipower.com.tw