Cuts to power bills for Hong Kong Island residents not enough for subdivided flat tenants, NGO says
- HK Electric to cut surcharge by 15.5 per cent over January levels as global fuel prices fall
- But Sze Lai-shan, deputy director of Society for Community Organisation, says more relief needed for residents living in subdivided flats
Lower electricity bills for Hong Kong Island residents prompted by falling fuel prices will not be enough to make a difference in the lives of the many of the city’s poorest, an NGO has said.
“In spite of the drop, some residents have told us electricity prices are still unaffordable, and that living on Hong Kong Island is particularly expensive,” she said.
“Many of the subdivided flats don’t have a separate electricity meter. Tenants succumb to a higher rate set by the lessor. Some lessors also refuse to help their tenants install a separate electricity meter.”
About one-fifth of the city’s 108,000 subdivided flats are on Hong Kong Island, with most in Eastern district, which includes Fortress Hill, Sai Wan Ho and Shau Kei Wan.
HK Electric, which supplies electricity to Hong Kong Island, Ap Lei Chau and Lamma Island, announced it would cut its fuel clause surcharge to 69.7 HK cents (8.9 US cents) per kilowatt-hour starting next month, down 15.5 per cent from 82.5 HK cents in January.
Overall, electricity prices will be reduced to HK$1.84 per kWh, from HK$1.97 in January, representing a 6.5 per cent decrease.
“With the stabilisation of international fuel prices, the outlook for further reduction in the fuel clause charge in the remainder of the year is positive,” a company spokesman said.
An average three-person household using 275kWh of electricity per month will now pay HK$253.4, compared with HK$288.6 in January.
“It has been three months in a row that CLP’s monthly fuel cost adjustment mechanism recorded a drop,” a spokeswoman said. “If international fuel prices remain stable this year, the trend of reducing the monthly fuel cost is expected to continue, reducing the pressure on customers’ electricity bills.
“International oil prices have fallen from their highs and there are signs of gradual stabilisation. We hope this situation will continue.”
Almost half of the city’s electricity is generated by natural gas, which on Thursday was trading at US$2.65 per unit, down 71.78 per cent from a high of HK$9.39 on August 15, 2022.
Residents have recently been hit with big hikes in their electricity bills, with the per-unit price for HK Electric customers reaching HK$2 in March.
Both power utilities cited the soaring global energy prices due to the year-long Russian invasion of Ukraine.
Electricity bills are calculated by using a base rate, a fuel cost surcharge and a rebate.
The base rate refers to the electricity company’s operating expenses, basic fuel costs and profits, while the fuel cost charge is the reimbursement for the fuel they have bought.
The two power companies said in February that the fuel cost adjustment, based on the difference between forecast and actual prices, could be updated every month to reflect the latest changes.
