CLP Power, HK Electric to raise electricity tariffs starting January 1 next year, with annual increases of less than 1%
The two power companies will increase electricity tariffs starting January 1 next year, with annual increases of less than 1%. CLP Power will raise rates by 0.98%, while HK Electric will increase by 0.9%.
Edward Lau Kwok-fan, Chairman of the LegCo Panel on Environmental Affairs, believes the increase is relatively mild.
He estimates that, given the rise in fuel costs, the increase should have been higher than 1%, but the two companies used the Tariff Stabilization Fund to keep the increase below 1%.
Lau stated today (Nov. 20) on a radio program that for the average citizen, the increase in electricity costs is not a good thing, especially with the possibility of bus companies also raising fares soon, leading citizens to feel that "the price of everything is going up".
He believes the government's regulatory role can help control the expenses of the two power companies, including whether daily operational costs and investments are necessary, allowing for more accurate predictions of basic electricity costs.
Dr. William Yu, Chief Executive Officer of the World Green Organization, mentioned in the same program that the electricity tariff increase was close to expectations, and he believes that infrastructure developments, including new natural gas units, are putting pressure on prices.
Yu pointed out that climate change is becoming increasingly severe, affecting outdoor cable connections and transmission systems, and that the two power companies need to maintain the resilience of their facilities, or else power outages will occur more frequently.
Professor Simon Wong Kit-lung, Chairman of the Energy Advisory Committee, believes that an electricity tariff increase below the rate of inflation is acceptable.
Wong noted that electricity costs in Hong Kong are lower than in several international cities, such as London and New York, where electricity rates are more than double those in Hong Kong.
He also thinks that electricity prices are ultimately influenced by fuel costs, which are affected by international factors, such as wars.
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