OREANDA-NEWS. July 01, 2013. Taiwan Power Company (Taipower) is considering purchasing natural gas and building a receiving station in Taiwan in an attempt to reduce energy costs, a top official from the company said.

In an interview with CNA, Chu Wen-chen, the state-run company's president, said Taipower might discontinue purchasing energy through CPC Corp., as the development of shale gas in the United States has contributed to lowering the price of natural gas.

Taipower's losses, as of the end of last year, stood at NTD 193.577 billion (USD6.39 billion), and the 2013 figure is expected to reach NTD 250 billion, which will jeopardize its capital fund of NTD 330 billion, Chu added.

Seventy percent of the company's annual revenue of some NTD 500 billion were used to purchase energy, Chu said, adding that the cost of coal-fired power was approximately NTD 75 billion, while natural gas cost about NTD 300 billion.

Chu noted that total costs of power generation had increased from NTD 1.87 per kilowatt in 2003 to NTD 3.04 in 2012, as the result of increasing fuel prices.

Taipower will have to reflect these price increases through adjusting electricity bills in October, he said.

Further, the reserves of coal-fuel energy will also fall from 45 to 36 days, which is expected to save NTD 200 million as part of an effort to implement an improved financial plan, Chu said.

Also, each power generating plant will be required to calculate its capacity and material costs to help adjust electricity bills, he added.