CLP Power, HongKong Electric to raise tariffs

PUBLISHED : Tuesday, 11 December, 2012, 7:39pm
UPDATED : Tuesday, 11 December, 2012, 8:31pm

Power users on both sides of Hong Kong harbour will face moderate increases in their electricity bills next year, lawmakers were told on Tuesday. 

CLP Power, which supplies about 2 million accounts in Kowloon and the New Territories, will raise its tariff by an average of 5.9 per cent.

That means power consumption per kilowatt-hour will go up from 98.7 cents to 104.5 cents, passing the one-dollar mark.

Meanwhile, Hongkong Electric, which provides power to Hong Kong Island and Lamma, will increase power prices by 2.9 per cent – for a kWh unit cost of 134.9 cents.

The increases were reported to the Executive Council and the Legislative Council on Tuesday. The power companies do not need approval from either body to institute the rate increases.

CLP managing director Richard Lancaster said on Tuesday the increase resulted from rising fuel costs associated with the use of new gas supplies from the West-East Gas pipeline.

He also said the company had sought to keep the adjustment to a reasonable level.

The rate increases come after the annual tariff review, which was held over the past few months, between the two power firms and the Environment Bureau.

Last year, the review led to a public outcry over what the government described as excessive increases – 9.2 per cent and 8 per cent proposed initially by CLP Power and Hongkong Electric, respectively.

CLP bowed to public pressure and cut its increase to 4.9 per cent, while Hongkong Electric dropped its rise to 6.3 per cent.