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HK Electric Announces Tariff Review for 2011


HK Electric Announces Tariff Review for 2011

14 Dec 2010

HK Electric today announced a 1.4 cent reduction in basic tariff and a 4.8 cent increase in fuel clause charge per unit of electricity to reflect rising fuel costs, effective 1 January 2011.

The average tariff will rise from 119.9 cents per unit of electricity in 2010 to 123.3 cents in 2011, a 2.8% increase after the basic tariff has been reduced to alleviate the impact of the tariff rise on customers.

The Managing Director of HK Electric, Mr. Tso Kai-sum said in the Legislative Council that international fuel prices have remained volatile in recent years. Prices for coal and liquefied natural gas have gone up by 31% and 13% respectively since the end of 2009 and the upward trend is expected to continue in 2011.

"In light of this, we have had to adjust the fuel clause charge to reflect rising fuel costs," Mr. Tso said, noting that fuel costs are a pass through and do not form part of the Company's profit.

Mr. Tso noted that this would be the first tariff increase for HK Electric since the new Scheme of Control took effect two years ago. "In 2009, we lowered the tariff by 5.9% followed by a tariff freeze in 2010. The adjustment in 2011 is solely to reflect the rising fuel costs," Mr. Tso explained.

Following the adjustment, 70% of HK Electric's domestic customers who use 500 units of electricity or below monthly will have their electricity charge increased by approximately $14 or less a month, while for 70% of non-domestic customers who use 1,700 units or below monthly, the increase will be approximately $58 or less a month.

HK Electric will continue to provide assistance to those in need through the Concessionary Tariff Schemes, which offer 60% discount on tariffs for the first 200 units of electricity for eligible applicants, including the elderly, disabled, unemployed and single-parent families with deposit and minimum charge payments waived.

Average Tariff for 2011

(Cents / kWh)





Average Basic Tariff




Fuel Clause Charge




Average Tariff



3.4 (+2.8%)