Power Assets, a unit of tycoon Li Ka-shing's flagship Cheung Kong, (Holdings), says a recent fall in coal prices will help relieve customers' burdens, after it posted a 6.8 per cent rise in first-half profit.
The company's net profit amounted to HK$4.33 billion in the first six months, up from HK$4.06 billion in the same period a year ago.
Power Assets raised power prices by 6.3 per cent at the start of the year - pared from the 8 per cent it originally sought, following a public outcry.
Yesterday, it said softening fuel prices would ease the burden on customers. Coal prices have fallen about 30 per cent since November, a Sanford Bernstein research report finds.
'The higher fuel prices experienced over the last few years have in recent months moderated,' the firm said in its results statement. '[This] together with the higher electricity sales should be beneficial to customers and help in reducing the balance of fuel costs that we have deferred passing on to customers.'
Power Assets, whose power generating arm Hongkong Electric is the sole generator and distributor of electricity on Hong Kong Island and Lamma Island, and CLP, which serves Kowloon, the New Territories and Lantau Island, say they have been under pressure to raise tariffs because of rising coal costs and increasing use of more expensive but cleaner-burning fuel such as natural gas to comply with stricter environmental protection regulations.
Government and public opposition saw CLP pare its increase request of 9.2 per cent by nearly half to 4.7 per cent at the start of this year.