Important Management Goals Implementation

　　Owing to the soaring international energy prices, fuel costs rose. This caused a great pressure in Taipower's management. In order to upgrade its overall management performance, the company strengthened and improved internal management through Management by Objective (MBO) System as a measure to enhance its operation efficiency and cut down costs.

　　The company adopted the four-perspective spirit of the Balanced Scorecard and made reference to the company's management strategies and major business directions and the important points of government's administration and evaluation, through the perspectives of customer, finance, caring and innovation, to establish its management goals. These goals were implemented through the Responsibility Center System. In 2006, the major management goals included: operation and maintenance cost control, fuel cost control, power purchased expense contral, line loss, power supply reliability, capital expenditure execution rate, nuclear safety, environmental protection, wind power development, energy conservation, etc.

　　Despite the unfavorable management environment, under the concerted effort of the employees, the goals were effectively controlled and fulfilled in 2006. Income before income tax was greatly reduced from the original legal budget set to be a loss of NT$13.7 billion to NT$2.89 billion. This was an outstanding achievement of the company's campaign for cost reduction. In the future, the company will steadfastly improve and strengthen core capability to reduce operation cost and raise operation efficiency to continually create good performance.