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.
As modern families aspire to an eco-friendly lifestyle, HK Electric promises its customers a green and comfortable way of life made possible by the use of electric appliances.
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 has been the power behind Hong Kong for more than 120 years, having established a long and fruitful partnership with the community. While our prime mission is to provide a world-class electricity supply, we focus not only on the results, but also on the way we deliver them.
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 announced today that the Company would continue to offer two special rebates – "Special Rent & Rates Rebate" and "Special Fuel Rebate" to all customers effective 1 January 2018. As a smaller "Special Fuel Rebate" will be offered, together with other annual adjustments, there will be a rebound in the Net Tariff from 110.4 cents to 112.5 cents per unit of electricity in 2018 (See table 1 below), representing an adjustment of 1.9%.
The "Special Rent and Rates Rebate" will be maintained at 4 cents per unit of electricity. As a result of rising operating costs, a drop in electricity sales and other factors, there will be a small increase in the Basic Tariff by 0.2 cents per unit of electricity, bringing the 2018 Net Basic Tariff to rise from 104.9 cents to 105.1 cents per unit of electricity.
The Fuel Clause Charge for 2018 will remain at 23.4 cents while the "Special Fuel Rebate" will be reduced to 16 cents per unit of electricity. As a result, the Net Fuel Clause Charge next year will be adjusted to 7.4 cents per unit of electricity.
Speaking at a meeting of the Legislative Council's Economic Development Panel, Mr. Wan Chi-tin, Managing Director of HK Electric, explained that the substantial "Special Fuel Rebate" of 17.9 cents per unit of electricity provided by HK Electric in 2017 at a total sum of over 1.9 billion dollars has led to a big drop in the Fuel Clause Recovery Account balance. So a smaller rebate will be offered next year, resulting in a tariff rebound.
"The tariff rebound in 2018 is mainly attributed to a smaller rebate and has little to do with the operating environment of the Company," Mr. Wan said. He added that with a substantial tariff reduction of 17.2% this year followed by a tariff rebound next year, the Net Tariff in 2018 will still be lower than that of 2016 by 15.7 %.
Mr. Wan reminded that HK Electric had made a pledge at the end of 2013 to freeze Net Tariffs from 2014 to 2018 at the 2013 level. Tariffs were frozen in the first two years followed by reductions in the following two years. In 2018, despite a tariff rebound following a smaller Special Fuel Rebate, the Net Tariff will still be 16.6% lower than in 2013 (See table 2 below) compared with the aggregated inflation of 11.7% from 2013 to present. "This demonstrates that we have honoured our commitment to freeze tariff for the five-year period," Mr. Wan concluded.
HK Electric will continue to provide the "Super Saver Discount" to encourage energy conservation. Domestic customers using no more than 100 units of electricity in any month will enjoy a 5% discount on their electricity bills. The concessionary tariff schemes to assist those in need will also enable eligible customers – the elderly, disabled, unemployed or single-parent families – to continue to benefit from a 60% discount for the first 200 units each month together with a waiver in the deposit and minimum charge.
Looking ahead, Mr. Wan noted that fuel prices have remained on an upward trend while HK Electric will increase its gas generation from about 34% now to 50% of the total output by 2020. With the increase in both natural gas volume and price, huge pressure on future tariffs is to be expected.
Table 1: Tariff for 2018
Special Rent & Rates Rebate
Net Basic Tariff
Fuel Clause Charge
Special Fuel Rebate
+ 2.1 (1.9%)
Table 2: 2013 - 2018 Net Tariff