Cheaper MTR tickets on horizon after Hong Kong officials ask for revised fare formula in 2017
Corporation to review how it sets prices as concern groups want government to have final say on level of increases to protect consumers
Commuters can expect more affordable MTR rides when a revised formula for determining the level of fare increases is adopted in 2017.
The government has asked the MTR Corporation to review its fare adjustment mechanism next year – one year ahead of its review scheduled for 2018. A letter requesting the move was issued to the corporation on Tuesday, a government spokesman said.
The company said in a statement on Wednesday morning that it had received the request for a joint review of the fare adjustment mechanism with the government, and that it would convene a board meeting to determine its response to the request, pending further announcement in due course.
Legal challenge bids to halt controversial extra funding for Hong Kong cross-border rail link
Concern groups wanted the government to have the final say on the level of increases, as in the case of bus fare adjustments, to protect consumers’ interests.
According to the present system, in place since 2007, the fare adjustment mechanism is reviewed every five years. The last review was in 2013, and the next scheduled review should be due for completion in 2018.
The 2013 review included factors such as corporation profitability and service performance as well as a profit sharing mechanism to ease commuters’ fare burden.
But critics said the formula was inadequate in protecting commuters’ interest, and they were especially unhappy that MTRC had been allowed to increase fares for the past six years despite huge profits.