‘Squeezed further’: calls for SME energy subsidies as Hong Kong power fuel surcharges soar
An industry leader and a lawmaker have called for subsidies for small and medium-sized enterprises after fuel surcharges imposed by Hong Kong’s two power suppliers rose by nearly 80 per cent and 15 per cent, respectively, since March, amid the Middle East conflict. HK Electric, which supplies electricity mainly to Hong Kong Island and Lamma Island, announced that its fuel clause charge would rise…
Small and medium-sized enterprises (SMEs) in Hong Kong are facing growing concerns as fuel surcharges from their electricity providers have surged, with some increases exceeding 80%. HK Electric, serving Hong Kong Island and Lamma Island, recently raised its fuel clause charge by 5.9%, bringing it to 60.7 HK cents per kWh in September. This marks the fourth consecutive monthly hike since May, with the charge jumping by about 1.3 times since March, a 78.5% increase since then.
CLP Power, which supplies electricity to Kowloon, the New Territories, Lantau and other outlying islands, has also increased its fuel surcharge by 15% since March, from 39.2 cents per unit to 45.1 cents per unit in September. This is the sixth consecutive month of increases.
Pamela Mak Mei-yee, honorary president of the Hong Kong Small and Medium Enterprises Association, called for subsidies to ease the pressure on smaller businesses. She suggested time-limited support such as fuel-cost rebates, instalment payment options and subsidies for energy-saving equipment. Mak also proposed issuing consumption vouchers for eligible households to help businesses while boosting sales in local shops.
Lawmaker Ray Wong Wing-wai noted that while the latest increase might not be significant, the constant back-and-forth of hikes and cuts makes it difficult for businesses to control their costs. He emphasized that SMEs in sectors with high electricity use, like laundries and food production, would be hit hardest, with electricity costs previously accounting for 5-8% of their overall expenses now reaching 13-14% after utility fees nearly doubled over the past year.
Wong urged the government and power companies to offer targeted subsidies, while businesses should adopt energy-saving solutions, drawing from the mainland's experience. He also mentioned that data centers powered by AI technologies in the Northern Metropolis would generate heat that could potentially be recovered for power supply.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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