Taipei: An internal report from state-owned Taiwan Power Co. (Taipower) has revealed that the company is seeking the government's approval to raise electricity rates by almost 6 percent on average. This move aims to mitigate significant financial losses experienced by the company. According to Focus Taiwan, the Ministry of Economic Affairs is scheduled to conduct a power rate assessment review meeting next week. This meeting will determine whether Taipower will be permitted to implement the proposed power tariff hike in April. The state-run company currently faces NT$422.9 billion (US$14.97 billion) in accumulated losses and requires an additional NT$50 billion in revenue this year to prevent further financial strain. The internal report outlines that power rates for household users and small businesses consuming less than 330 kilowatt-hour (kWh) per month will see an increase of 11-33 percent. Meanwhile, those consuming more than 330 kWh per month will face electricity bill increases of no more than 10 per cent under a progressive tariff mechanism. The industrial sector is expected to experience only slight rate increases, contributing to the overall average tariff hike of nearly 6 percent. According to Taipower, the consideration for power rate hikes follows the Legislative Yuan's decision to reduce the general government budget plan. This includes the removal of two NT$100 billion subsidy projects for the power company and other subsidies intended for construction funds on offshore islands. Economics Minister Kuo Jyh-huei emphasized the ministry's commitment to keeping the local consumer price index (CPI) from exceeding an alert level of 2 percent, despite the potential impacts on inflation from the proposed rate hikes. In the first two months of this year, Taiwan's CPI increased by 2.12 percent. The Directorate General of Budget, Accounting and Statistics has projected a 1.94 percent inflation rate for 2025. The anticipated rate hikes are intended to align electricity prices more closely with costs, with T aipower Chairman Tseng Wen-sheng expressing a desire for a more equitable power rate structure, particularly for smaller households and businesses. Should the Ministry of Economic Affairs approve the rate hike plan, approximately 13.60 million households and 910,000 small businesses will be affected. Additionally, industrial users, including high voltage users such as Taiwan Semiconductor Manufacturing Co., are expected to experience increased power expenses. Despite these proposed rate increases, Taipower acknowledged that breaking even this year remains unlikely due to inflationary impacts on household consumers and the competitive needs of Taiwan's industries.