Taiwan Power Company’s headquarters in Taipei. CNA file photo

Taipei, June 9 (CNA) Taiwan Power Co. (Taipower) is expected to reduce its significant deficits to NT$9.3 billion (US$287 million) in 2024, primarily due to an additional budget allocation from the Cabinet, according to the Legislative Yuan.

The Legislature’s Budget Center said in a report that the extra NT$100 billion fund will help cover the anticipated losses of approximately NT$188.7 billion for the state-run company.

Meanwhile, a recent electricity rate hike in Taiwan and declining fuel prices are also considered favorable factors for reducing the financial burden of debt-ridden Taipower, the center said.

The budget increase, proposed in early May, is being reviewed by lawmakers, it said.

Data from the center also showed that if the current supplementary budget proposal is included, the central government has given Taipower NT$150 billion in subsidies and NT$250 billion in capital injections over the past two years.

But Taipower still needs to address its accumulated deficits of NT$382.6 billion by the end of 2023, the center pointed out, adding that it is essential for the company to explore effective financial improvement measures to facilitate sustainable operations.