Hong Kong electricity bills to increase by up to 5.2 per cent in 2020, but HK Electric and CLP Power say customers will not pay more

Announcement comes with city in recession, however a HK$2,000 subsidy will also kick in and help cancel out the hike

CLP increases tariffs by 2.5 per cent while HK Electric puts its rates up by 5.2 per cent

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An illuminated Hong Kong faces steeper electricity bills, which are due to kick in on January 1. Photo: Martin Chan

Published: 5:14pm, 10 Dec 2019Updated: 11:28pm, 10 Dec 2019

Electricity bills in Hong Kong will increase by up to 5.2 per cent from January 1, but the city’s two power companies say customers will not pay more because of subsidies.

Revealing the rises on Tuesday, HK Electric and CLP Power said some households would even see their charges reduced in 2020, with rebates and a HK$2,000 (US$255) sweetener for households cancelling out the higher tariffs.

The increases were expected because the firms must cut their reliance on coal as part of the city’s effort to meet emissions targets.

Speaking at Tuesday’s Legislative Council economic development panel, Secretary for the Environment Wong Kam-sing, said the firms were encouraged to minimise the burden on customers.

“In the Environment Bureau's discussion with the two power companies, we asked them to come up with a gentle increase, as well as provide relief measures for different sectors, particularly for small and medium businesses,” he said.

CLP Power, which serves Kowloon, the New Territories and Lantau, will increase tariffs by 2.5 per cent, to HK$1.218 per unit.

Customers of CLP Group, a power company in Hong Kong, are facing higher tariffs. Photo: Shutterstock