Hong Kong power firms to raise fuel charges from September amid geopolitical tensions
Hong Kong’s two electricity suppliers will raise fuel-related charges from next month, citing geopolitical tensions and volatility in international energy markets. As electricity costs rise, CLP Power and HK Electric have introduced rebate and relief schemes as grass-roots households face higher air-conditioning expenses after a summer with an unusually large number of very hot days. HK Electric,…
In September, electricity bills for local residents are set to increase as two major power suppliers raise fuel adjustment charges. CLP Power has increased its fuel adjustment charge to 45.1 cents per unit of electricity, a slight rise from August. This adjustment is primarily due to changes in actual fuel prices over the past three months.
To help offset these cost fluctuations, CLP is offering a three-month special fuel rebate of eight cents per unit to residential customers consuming no more than 900 units per month. This rebate will lower the effective fuel charge to 37.1 cents per unit for qualifying customers, potentially saving a typical household with 450 units monthly consumption over HK$100 in the three-month period.
On the other hand, HK Electric has also raised its fuel clause charge (FCC) for September by 3.4 cents, now at 60.7 cents per unit. This increase is attributed to the deferred impact of fuel costs from May to July. When combined with the basic tariff, HK Electric’s average net tariff for September is 188.6 cents per unit, marking a 1.8 percent increase compared to August.
To assist smaller households, HK Electric is providing a separate special electricity subsidy of eight cents per unit for customers using 450 units or less per month, also from August to October. For households at this consumption level, the net monthly bill is expected to increase by around HK$15.3, factoring in the subsidy and the basic tariff.
HK Electric attributes the rising fuel costs to a more than doubling of spot prices for liquefied natural gas (LNG) since the beginning of geopolitical tensions earlier this year, with these costs continuing to rise. As fuel expenses are gradually passed through via the FCC mechanism, consumers can anticipate relatively higher fuel adjustment charges in the coming months.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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