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Jess Ma

Danny Mok

Hongkongers could pay heftier electricity bills in the near future, a utility firm has warned, saying an increase in its surcharge will be “unavoidable” if conflict in the Middle East continues to impact fuel prices.
HK Electric said on Thursday that it would initially decrease its fuel charge cost (FCC) in April, but would raise it mid-year if fuel prices remained high or further increased.
A day earlier, fellow utility firm CLP Power increased its fuel cost adjustment (FCA) charge due to a discrepancy between actual fuel prices and forecasts amid the United States-Israel war against Iran, which has driven up wholesale gas and power prices.
CLP’s move marks the first upwards revision since January last year.
HK Electric provides energy for Hong Kong Island and Lamma Island, while CLP Power serves Kowloon, the New Territories and Lantau Island.
The FCC or FCA, together with the basic tariff, make up the net tariff, which refers to the total price paid by consumers.
HK Electric said that while it would be decreasing the FCC for April, the cost did not “reflect the recent sharp increase in fuel prices amid tight supply due to the instability in the Middle East”.
“The FCC will face an unavoidable and significant increase from mid-year if the current market conditions persist or even worsen,” a spokesman said.
He said fuel prices were subject to fluctuations arising from changes in supply and demand attributable to a host of factors, including geopolitical forces, which are “beyond the control of power companies”.
HK Electric, which primarily generates power using natural gas and coal, said it would make adjustments to the fuel mix and had coal-fired units on standby as a contingency measure.
The firm’s FCC for April will be 30.4 HK cents per unit of electricity, down from 34 HK cents per unit in March.

HK Electric said the average net tariff for April would be 158.3 HK cents per unit, which is 3.6 HK cents lower than the rate for March.
On Wednesday, CLP Power increased its FCA charge for April from 39.2 HK cents to 39.8 HK cents per kilowatt-hour, an increase of 0.6 HK cents – the first rise in more than a year.
With the basic tariff included, the net electricity charge for April will be 141 HK cents per kWh.
For example, a CLP household consuming 275 units of electricity would need to pay HK$379.38 in April, as the increase in FCC would add HK$1.65 to the bill.
CLP said the adjustment reflected changes in actual fuel prices compared with earlier forecasts and that the April increase was caused mainly by higher natural gas prices.
It said the fuel cost adjustment was reviewed monthly to reflect fluctuations in the prices of natural gas, coal and oil.
Natural gas prices have been volatile following the start of the US-Israel war against Iran on February 28, with threats to the Strait of Hormuz causing European and Asian benchmarks to more than double.
Before announcing its own adjustment for April, HK Electric said it would consult the government, as usual, at the end of the year on its basic tariff.


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HK Electric has said that it will initially decrease its fuel charge cost in April, but may raise it mid-year if fuel prices remain high or further increase. Photo: SCMP

Hongkongers’ energy bills are expected to go up due to the conflict in the Middle East. Photo: Eugene Lee

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Hong Kong

Hong Kong Economy

Fellow utility firm CLP Power earlier increased fuel cost adjustment charge due to discrepancy between actual fuel prices and forecasts


Fellow utility firm CLP Power earlier increased fuel cost adjustment charge due to discrepancy between actual fuel prices and forecasts.


Customers could pay heftier bills, HK Electric warns, weighs surcharge rise

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Fellow utility firm CLP Power earlier increased fuel cost adjustment charge due to discrepancy between actual fuel prices and forecasts

Fellow utility firm CLP Power earlier increased fuel cost adjustment charge due to discrepancy between actual fuel prices and forecasts