Electricity bills in Hong Kong to see 1 per cent cut, but lawmakers want more

Households and businesses across the territory will see their cost of electricity reduced by about 1 per cent next year, driven by lower fuel clause charges as global energy prices continue to slide.

But lawmakers slammed the city’s two power suppliers for playing a “numbers game” believing there was massive room for further reductions given huge guaranteed profits and surpluses in what they’ve set aside to procure fuel.

Environment secretary Wong Kam-sing claimed the initial plan from the duo was to freeze rates but that he had pressed for them to be lowered. This is the first rate cut for both companies since 2009.

CLP Power, which supplies two million accounts across Kowloon, New Territories and Lantau, told the Legislative Council economic development panel yesterday that average net tariff rates would be reduced from 114.2 cents per kilowatt hour to 113.2 cents beginning January.

“Because of a significant drop in fuel prices, the impact of the fuel cost increase has been contained, enabling us to reduce our tariff for 2016.” said CLP boss Paul Poon Wai-yin. The rate could be kept in 2017 if energy prices remained as low, he said.

READ MORE: No need to cut profits of Hong Kong power suppliers CLP Power and HK Electric, consultation finds