Taipower May Be Split into Two Firms

According to local media reports, the Executive Yuan has proposed amendments to the national Electricity Act that would divide the state-owned Taiwan Power Co., generally known as Taipower, into two separate firms – one a power generator, the other a power distribution network. The amendments would further deregulate the power industry to provide more room for private investment, injecting more market competition into Taiwan’s energy market in the interest of promoting greater efficiency. The amendments would have to be approved by the Legislative Yuan.

The two companies would be managed separately, but the extent to which either will be privatized remains unclear. Currently Taipower generates some 80% of Taiwan’s power supply, with Independent Power Producers (IPPs) – whose output is distributed through Taipower’s national grid – accounting for most of the remainder.