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Hong KongHong Kong Economy

HK Electric to slash electricity tariffs by 17pc, while CLP Power will freeze charges

Hong Kong Island and Lamma residents to be biggest beneficiaries, but environmentalist warns of higher charges down the road to meet gas targets

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Consumers of electricity on Hong Kong Island will see a sharp cut in their bills. Photo: David Wong
Ernest Kao
Hongkongers will be spared higher electricity bills for a second consecutive year, with HK Electric slashing tariffs by 17.2 per cent and CLP Power freezing them as a result of their bloated fuel clause accounts.

CLP Power, which supplies Lantau, Kowloon and the New Territories, will keep its average net tariff of 113.2 cents per unit unchanged but give a 2.3 per cent special fuel rebate to customers.

HK Electric, which powers Hong Kong Island and Lamma, will cut charges from 133.4 cents per unit to 110.4 cents, on the back of a reduction in the fuel clause charge and a special fuel rebate.

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HK Electric’s customers are also eligible for a rebate of 4 cents per unit as a result of the company recently winning a court case against the government for overcharging on rents and rates.

The tariff review proposals were presented to the Legislative Council’s economic development panel on Tuesday, marking the first time ever that HK Electric has set lower rates than CLP.

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“The net tariff for 2017 will be about 8 per cent lower than ... in 2009 when the current scheme of control [regulatory framework] came into effect,” HK Electric managing director Wan Chi-tin said, citing a “rather special year”.

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