HK Electric Investments is the first fixed single investment trust listed in Hong Kong with a focus on the power industry. Our principal operating subsidiary, The Hongkong Electric Company, Limited (HK Electric), commenced operations in 1890 and is one of the longest-established utility companies in the world.
Over our long history, we have consistently supported Hong Kong's economic journey by offering safe, reliable and affordable electricity while minimising the impact of our operations on the environment as we strive to deliver sustainable growth in long-term value to our investors.
HK Electric Investments believes that open and on-going communication with our stakeholders is central to our operation and development. We engage different stakeholders through a variety of channels and stakeholder suggestions and feedback are highly valued in our decision making process as we strive for continuous improvements.
Underpinned by its core value of "Pursuit of Excellence", HK Electric is committed to delivering excellent services and supply reliability to our customers. We have been providing a world-class supply reliability of over 99.999% since 1997 and all our service standards are achieved or even surpassed every year.
To satisfy the aspirations from the community, and in support of Government’s energy and environmental policy objectives, HK Electric has launched a suite of "Smart Power Services".
HK Electric is one of the longest-established power companies in the world. The Company has a world-class record of providing a highly reliable electricity supply to Hong Kong and Lamma islands at a reasonable and affordable price.
HK Electric Investments is committed to meeting the long-term energy needs and supporting the sustainable development of the community we serve. To do this, we focus not only on powering Hong Kong with a world-class electricity supply, but also on the way we deliver it and the impacts it has on the environment.
HK Electric aspires to be an employer of choice. We have policies and systems in place to attract talents and through continuous training and development, nurture them for a fulfilling career. We offer competitive remuneration, an ideal workplace and comprehensive wellness programmes for our employees while maintaining regular and open dialogues with them.
HK Electric today announced a 2.9% tariff increase to reflect rising operating costs and fuel expenses. Effective 1 January 2013, the net tariff will be adjusted from 131.1 cents to 134.9 cents per unit of electricity.
The increase however, is not expected to impact about 18% of the company's domestic customers and 44% of non-domestic customers who have relatively lower monthly consumption, thanks to the introduction of a number of relief measures including the new "Super Saver Discount", devised to ease the burden on customers and encourage energy conservation.
Addressing a meeting of the Economic Development Panel of the Legislative Council today, the Managing Director of HK Electric, Mr. Tso Kai-sum believes the rate of increase to be acceptable to the public. "At a moderate 2.9%, the tariff increase is below the rate of inflation," Mr. Tso said. The moderate increase is made possible as the company has transferred over $300 million from its Tariff Stabilisation Fund to help reduce the pressure on tariff.
Mr. Tso explained that basic tariff for 2013 will be slightly adjusted by 0.6 cents from 94.1 cents to 94.7 cents per unit of electricity due to rising material and engineering contract prices as well as other costs. HK Electric's basic tariff has remained stable in the past four years and even following the 2013 increase, it is still 19% lower than the 2008 level.
The fuel clause charge will be increased by 3.2 cents per unit of electricity from 37 cents in 2012 to 40.2 cents in 2013 as fuel prices are expected to remain at high levels, resulting in higher fuel expenses for the coming year. With this adjustment, the debit balance of HK Electric's Fuel Clause Recovery Account will be lowered to about $500 million by end 2013. Fuel costs are a pass-through and do not form part of the company's profit.
Under the newly introduced "Super Saver Discount", domestic customers using no more than 100 units of electricity in any month will be given a 5% discount on their electricity bills. At present, about 10% of HK Electric's 450,000 domestic customers are eligible for the discount. Customers using in excess of 100 units but not more than 150 units of electricity a month will enjoy a tariff freeze in 2013. These two groups represent about 18% of the company's domestic customers in total.
To contain tariff impact on non-domestic customers, HK Electric has further enhanced its current tariff structure where customers using more electricity are charged higher tariffs at a progressive rate. A new tariff block has been created for non-domestic customers using 500 units of electricity or less a month and this group of customers will also enjoy a tariff freeze in 2013. These customers account for 44% of all non-domestic customers.
Following the tariff review, 70% of HK Electric's domestic customers who use 500 units or below monthly will have their tariffs increased by $13.2 or less a month. For 70% of non-domestic customers who use 1,700 units or below a month, the increase is $49.2 or less a month.
HK Electric remains firmly committed to providing assistance to those in need. The Concessionary Tariff Schemes offer 60% discount on tariffs for the first 200 units of electricity for comprehensive social security assistance recipients, including the elderly, disabled, unemployed and single-parent families with deposit and minimum charge payments waived. These customers can enjoy extra savings with the "Super Saver Discount" if their monthly consumption is within 100 units in any month.
Tariff Review for 2013
Fuel Clause Charge