HK Electric to raise fuel surcharge by 20pc in June amid Middle East volatility

HK Electric has announced a significant increase in its fuel clause charge for June, with rates set to jump by more than 20 percent as the impact of rising international energy prices begins to hit local electricity bills.

The utility company confirmed that the fuel adjustment fee will rise to 31.3 cents per kilowatt-hour in June, representing an increase of 5.3 cents compared to the 26 cents charged in May.

According to HK Electric, this upward adjustment is a direct reflection of the recent surge in global fuel prices caused by ongoing conflicts in the Middle East.

Despite this month's sharp increase, the company warned that the current figures do not yet fully capture the total change in fuel costs due to a natural delay in the accounting process.

Consequently, residents should expect the fuel surcharge to continue climbing in the coming months.

The monthly fuel adjustment charge is determined by a fixed mechanism based on the average actual fuel costs recorded over the preceding three months.

Under this system, the upcoming rate for June was calculated using the average fuel expenditure from February, March, and April of this year.

This rolling average approach means that while price shocks in the global energy market are not felt by consumers immediately, they inevitably lead to sustained increases in utility costs over the following quarter.

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