Taiwan's state-owned power company is facing a huge jump in fuel costs because of the Middle East conflict, which is bad for its finances and could eventually mean higher electricity bills for people and businesses.

• Higher natural gas prices are set to add more than NT$120 billion (about US$3.8 billion) to Taipower's fuel bill in 2026.
• Gas is the biggest piece of the puzzle — it fuels half of Taipower's electricity output, and its average gas purchase price is up sharply from last year.
• The company is already deep in the red, with losses piling up to NT$376.4 billion.
• Taipower wants government money to plug the gap, and the cabinet is expected to propose subsidies — but parliament has to approve them.
• Those subsidies are the main thing keeping electricity prices steady for households and industry.

Outlook: If lawmakers do not approve the subsidies, pressure to raise electricity prices in Taiwan will grow.