CLP Power eyes 5.9% electricity tariff hikes

Guess how much HK Electric's proposal is.

According to a release, Hong Kong's two power companies tabled tariff increases at the Legislative Council’s Economic Services Panel meeting.

CLP Power is seeking a 5.9% increase for next year, while HK Electric proposed a 2.9% hike.

CLP said the Average Basic Tariff for 2013 will remain unchanged. However, it is asking for the 5.9% rise because of increased fuel costs and an adjustment to its Rent & Rates Special Rebate arrangement.

HK Electric said its request reflects rising operating costs and fuel expenses. It wants to adjust the net tariff from 131.1 cents to 134.9 cents per unit of electricity, from January 1.

Secretary for the Environment KS Wong attended the meeting. Afterwards, he said: “The Government has tried to have a balance between environment concern, pricing and other basic policy areas. We can understand the offer resulted from negotiations in the past few months. We expect in the longer term, including the mid-term review and the 2018 agreement review, there will be room for further negotiations. The resulted percentage in the tariff review is understandable within the framework of the agreement.”

When asked whether the increases will create pressure for the mid-term review or for people to look at scrapping the scheme of control, Mr Wong said: “I think today's opinion is trying to push society to re-think the current agreement, particularly the profit margin. So I think the voice is clear and we would follow up.”

Mr Wong added the mid-term review will start by early next year.