Taiwan power outage: 151 companies hit, with about $4m in losses

A police stands in front of a building during a massive power outage in Taipei, Taiwan, on Aug 15, 2017.
A police stands in front of a building during a massive power outage in Taipei, Taiwan, on Aug 15, 2017.PHOTO: REUTERS

TAIPEI (REUTERS) - Taiwan's massive power outage on Tuesday (Aug 15) resulted in NT$87.5 million (S$3.9 million) worth of losses for 151 companies in industrial parks and export processing zones on the island, the economics ministry said on Thursday.

The government plans to release a figure for the overall economic cost of the blackout in the next few days, a ministry spokesman said.

The five-hour long blackout affected millions of homes as well as offices and companies. The outage prompted an apology from President Tsai Ing-wen.

Advanced Semiconductor Engineering told Reuters the power outage resulted in a preliminary estimate of US$500,000 (S$684,000) to US$800,000 worth of losses for the company.

However, the company does not expect the losses to have an impact on its August revenues as it plans to undergo overtime work to compensate, a company spokesman said.

The blackout was caused by "structural problems" and human error involving the replacement of equipment at state-owned gas supplier CPC Corp, which ultimately affected the operations of a power plant owned by state-run Taiwan Power, CPC Corp said.


The misstep caused six generators at the plant to stop working.

The Ministry of Economics Affairs and Taiwan Power said in separate statements late on Wednesday that 5.92 million homes were affected by the outage and that the power company would offer electricity fee deductions totalling NT$360 million. Once approved by the ministry, the deductions would be made in the next round of electricity bills.

Government officials said a task force would be set up to investigate the cause of the outage.

Taiwan Power Vice-President Lan Hung Wei said in an interview with Reuters that the company was making improvements to overall oversight of operations.

"For this incident, I think it's a problem of implementing the work standard operational procedure... The engineering and site operational management needs to be improved. We will work to improve these areas," Lan said.

Taiwan Power also hoped the government's green energy policies and the company's complementary green energy measures could partially help resolve Taiwan's otherwise chronic electricity supply shortages, Lan said.

Taiwanese companies have long complained of shortages in water and electricity supply that affect their operations.

Leading technology companies on the industrialised island nevertheless reported little impact from the outage this week.

While Advanced reported some potential costs, Taiwan Semiconductor Manufacturing Company said its operations were not affected, as did electronics manufacturer Pegatron Corp.