Editorial | Cheaper electricity bills are nice but not enough
It so happens that lower fuel costs have resulted in a modest cut. A more reasonable tariff adjustment mechanism remains the way forward
The reduction seems to defy the perception that the saying “what goes up must come down” does not apply to utility bills. But the cut remains the exception rather than the norm, as this is only the second time since 2017 that the annual electricity tariff adjustment has resulted in users paying less.
The truth is that the adjustment is based on a basket of factors that are too complex for public understanding. As the government said, the two power companies eventually agreed to lower the average net tariff “after rounds of negotiations”.
The basic tariffs continue to spiral as a result of rising operation costs, with CLP Power charging 3.3 per cent more to 101.2 HK cents per kilowatt-hour (13 US cents per kWh) and HK Electric raising the rate by 4.1 per cent to 127.9 HK cents per kWh. But thanks to the reduced fuel surcharge, the adjustments for CLP and HK Electric in 2026 will translate into 2.6 and 2.2 per cent cuts respectively, or about HK$10 less per month for a three-member family.
The cheaper bills will provide welcome respite for households and businesses, many of which are still struggling to cope in an unsettling economic environment. The two power giants are also well aware of their social responsibility and are dishing out an array of concessions and green initiatives for low-income groups. More should be done in light of their healthy financial situation.
Inevitably, the transition towards green energy, as well as investment against extreme weather and cyberattacks, will continue to drive up operating costs. This is not helped when a controversial scheme of control guarantees the two companies a return of up to 8 per cent based on the value of their electricity generation assets. The agreement has limited the scope of manoeuvre of the government and put users in a disadvantaged position.