Stung over tariff rise, Towngas vows freeze

Towngas has vowed not to raise tariffs in the next two years after criticism of its planned 2.8 per cent rise next month, the second increase in two years.

'We can't control rising costs so we can't make a pledge [not to raise charges] for a long period of time. But we can make the promise of not raising tariffs in the coming two years,' Towngas' managing director, Alfred Chan Wing-kin, told lawmakers at an economic development panel meeting yesterday.

The gas supplier will raise its basic tariff by 0.6 HK cents per megajoule from Thursday to the new range of 20.95 to 21.97 HK cents.

About two dozen demonstrators staged a rally outside the Legislative Council building before the meeting in protest against the tariff rise.

Many legislators also questioned the price increase given that Towngas raised its tariff by 1.4 per cent in October 2008 and had posted billions of dollars in profits in recent years.

Democrat Emily Lau Wai-hing noted that Towngas earned HK$5.17 billion last year, HK$4.3 billion in 2008 and HK$9.2 billion in 2007. 'You earn so much money and did you know ... [according to] the Census and Statistics Department's figures measured in December, Hong Kong employees' average salary dropped 0.8 per cent after taking into account the impact of inflation?' Lau said.

Another lawmaker, Wong Kwok-hing, criticised the government for not regulating Towngas price rises.