CLP Power yesterday scaled back its plan to raise its electricity charges by an average of 9.2 per cent. Instead it proposes a a 7.4 per cent rise.
But the concession did nothing to appease politicians, who have demanded further reductions.
CLP, the monopoly electricity supplier to Kowloon and the New Territories, is sticking with its plan to charge an extra 5 cents per kilowatt-hour of electricity, but will now increase its fuel-cost levy by 2 cents per kilowatt-hour rather than 3.7 cents. Overall, it will charge 101.1 cents per kilowatt-hour, a third less than Hongkong Electric's tariff for Hong Kong Island and Lamma residents.
To promote energy saving, CLP has left unchanged proposals to charge heavy power users more and scrap bulk discounts for businesses.
Lawmakers remained dissatisfied, saying the increase in charges still exceeds inflation.
'This is just a numbers game, as the basic tariff is not lowered,' said Fred Li Wah-ming of the Democratic Party.
CLP said the adjustment was made possible by carrying a larger deficit in its fuel clause account. The changes will not affect CLP's rate of return but might affect cash flow, as the account's deficit is expected to grow to HK$1.4 billion, a level similar to that borne by Hongkong Electric.