Taipower to be probed for power purchase

Taipower needs to show non-culpability.

It will soon be subjected to an investigation by Taiwan's Fair Trade Commission, which finds controversy in Taipower's decision to purchase electricity from independent power producers.

The commission will ask the four IPPs involved to appear at public hearings in the near future, said commission Chairman Wu Shiow-ming.

Wu’s remarks came after Taipower filed lawsuits against Kuo Kuang Power Co, Star Energy Corp, Sun Ba Power Corp and Hsing-yuan Power Corp last month, after failed negotiations to change contractual terms.

The four companies are reinvestment units of Taiwan Cogeneration Corp, which is a Taipower subsidiary.

Over the past three months, the Bureau of Energy has convened several rounds of meetings between Taipower and the four IPPs over their purchase agreements. However, the IPPs rejected Taipower’s proposals, saying that changes in the terms of contracts might force them to commit breaches of trust and would need to be approved by their boards and shareholders.

Wu said the commission will prioritize the investigation and it would likely take up to six months to show results, which is three months longer than legislators’ original requests.

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