Power Pricing

Hong Kong needs to rethink power company's sweet deal

CLP's sweet deal needs a rethink

The warning of hefty tariff increases by the city's top energy supplier is a case of déjà vu. After imposing a 5.9 per cent tariff increase early this year, CLP reiterated that electricity prices could rise 40 per cent within a few years, saying the switch to natural gas has pushed up fuel costs. The gloomy picture should not come as a big surprise. The power giant first sounded the warning last year after being forced to cut back its annual increase substantially. The rhetoric is nothing new but it is guaranteed to generate outrage, coming from a monopoly that earned HK$8.3 billion last year.

Thursday, 7 March, 2013, 2:35am 7 comments

Analysts expect energy pricing reform after NPC

Sinopec and PetroChina lost billions of yuan last year. Photo: AP

Operators and investors in the mainland's energy sector will be eager to scour Premier Wen Jiabao's annual government work report tomorrow for the key words "price reform".

4 Mar 2013 - 5:42am

Beijing struggling to fulfil its vow to reform power pricing

Workers check on an electricity pylon supplying power to rural areas and farmlands of Chuzhou, in Anhui province. Photo: Reuters

The effort, first spearheaded by former Premier Zhu Rongji, has been hampered by insufficient political courage to open the market to price competition and let end-user electricity prices reflect the true cost of energy production and distribution, analysts said.

13 Feb 2013 - 5:36am