Hong Kong must break firms’ tight grip on electricity market to help consumers, says study
Expert report calls on government to overhaul its regulation of power suppliers, branding it unfair to consumers and lacking transparency
The Hong Kong government should break up the dominance of electricity suppliers CLP Power and Hongkong Electric and revamp its regulatory framework, which is "unfair" to consumers, a study has concluded.
The Consumer Council report also calls for the development of renewable energy, the importation of electricity and more nuclear power from Guangdong, and greater use of natural gas to meet the government's goal of supplying reliable, safe, sustainable and affordable energy.
Compiled over 18 months by three overseas experts, the study effectively sets the agenda for a public consultation next year on the post-2018 regulatory road map and the mix of fuels in the city's electricity market.
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"The goals are conflicting," said Consumer Council chief executive Gilly Wong Fung-han. "But the reform can be done step by step."
The 170-page report comes as CLP and Hongkong Electric prepare to reveal next year's planned tariffs. CLP is reported to be considering a rise of 5 to 6 per cent, while Hongkong Electric may retain current charges.
For over a century, CLP has served households in Kowloon, the New Territories and Lantau, while Hongkong Electric provides power on Hong Kong Island and Lamma.