Higher power tariffs loom

Consumers are expected to face higher energy bills next year amid natural gas price fluctuation, an energy economist has cautioned.

The warning came as HK Electric and CLP Power are set to announce next year's electricity tariffs today.

It is understood that the government will tighten the supply reliability and restoration standards in the scheme of control agreements with the two power companies on incidents of extensive power outage.

Contrary to the CLP that has frozen its average basic tariff at 93.7 cents per unit of electricity for the past two years, HK Electric raised its average basic unit tariff to 114.5 cents early this year.

The fuel adjustment charge updated every month has fallen since May.

CLP will charge its clients 49.4 cents per unit next month while HK Electric lowers its charge to 46.3 cents per unit - meaning CLP customers will pay an average of 143.1 cents and HK Electric customers will pay 160.8 cents per unit in net electricity tariff next month before special rebates offered by the two power companies.

These will be 8 percent and 18 percent cheaper than those in January this year.

World Green Organization chief executive William Yu Yuen-ping believes the fuel adjustment cost may cease to fall next year as the city will switch to more natural gas in generating power at a time international natural gas prices fluctuate.

Yu warned that investment in infrastructure such as offshore liquefied natural gas terminal may also cause basic tariffs to increase.

The two power companies yesterday said they will introduce measures to ease the burden on the grassroots. CLP said it is setting aside over HK$200 million from the CLP Community Energy Saving Fund for a series of programs to support the grassroots, promote renewable energy development, encourage energy saving, reduce carbon emissions and boost the economy.

About HK$70 million will finance programs such as providing electricity subsidies to the underprivileged, including households living in subdivided flats and to improve their home electrical safety.

CLP will also offer electricity subsidies of HK$600 to 50,000 elderly people aged 65 or older, low-income families and the disabled as well as electricity subsidies of HK$1,000 to 20,000 subdivided flat tenants, by allocating HK$50 million from the fund to the CLP Electricity Subsidies for the Underprivileged Families Program.

"Although society has returned to normal after the pandemic, grassroots families still face great challenges. The CLP Community Energy Saving Fund will support underprivileged families through targeted assistance programs, which aim to reduce their electricity bills and improve their home safety," said CLP chief corporate development officer Quince Chong Wai-yan.

Chong said CLP will also distribute HK$100 coupons to 580,000 customers for consuming less electricity and to elderly people who qualify for concessionary tariffs. The coupons will cost HK$58 million.

HK Electric will hand out cash coupons worth HK$200 to around 10,000 underprivileged families to buy daily necessities next year, while setting aside HK$55 million for its "Smart Power Services" to achieve carbon neutrality and support the grassroots.

"Though Hong Kong's economy is recovering, there are still many challenges ahead, with low-income families suffering the most. HK Electric will offer financial relief while encouraging them to save energy and lead a low-carbon lifestyle," said general manager for customer services Raymond Choi Wai-man.

sophie.hui@singtaonewscorp.com