Power Companies Announce Tariff Hikes Of 5-6 Pc

Hong Kong's two power companies on Tuesday announced tariff increases of around 5 and 6 percent for next year.

CLP Power, which serves Kowloon, the New Territories and Lantau Island, said basic tariff will remain unchanged for the third consecutive year at 93.7 cents per unit of electricity. But having taken into account fuel charge and an existing rebate, there will be an actual increase of 6.4 percent in net tariff compared with the current level.

As for people living on Hong Kong and Lamma islands, their electricity bill will go up by 5.5 percent. HK Electric said it is the result of adjustment in fuel charge and investment cost in decarbonisation.

The new rates will come into effect on January 1 next year.

Both companies cited an increase in global energy prices, as well as the energy crisis caused by the conflict between Russia and Ukraine, among the factors contributing to the tariff increases.

The Secretary for Environment and Ecology, Tse Chin-wan, told a Legco panel meeting the government had held multiple rounds of meetings with both firms to discuss the tariff hikes.

“We asked them to spare no effort in reducing the increase rate and minimising the impact of power price adjustments on society,” he told lawmakers.