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HK Electric to Freeze 2021 Tariff with Continuing Support for Needy Customers


HK Electric to Freeze 2021 Tariff with Continuing Support for Needy Customers

10 Nov 2020

HK Electric announced today a tariff freeze for 2021 where a reduction in the Fuel Clause Charge will fully offset the upward adjustment of the Basic Tariff.

The Net Tariff for 2021 will be maintained at 126.4 cents per unit of electricity, same as that in 2020. While the Basic Tariff will increase by 7 cents from 102 cents in 2020 to 109 cents in 2021, the Fuel Clause Charge will be reduced by 7.4 cents to 17.4 cents per unit of electricity.

The "Special Rent and Rates Rebate", offered in the past several years will be discontinued in 2021, as refunds received from Government in respect of the rent and rates overcharged have been fully returned to customers. (See table below)

Speaking at a special meeting of the Legislative Council's Economic Development Panel, Mr. Wan Chi-tin, Managing Director of HK Electric, attributed the adjustment of the Basic Tariff to an increase in capital expenditure, required for the "coal-to-gas" transition in electricity generation to support Government's environmental policy, the reinforcement of transmission and distribution systems, as well as the installation of smart meters to help transform Hong Kong into a Smart City.

On the other hand, a significant drop in electricity sales brought about by COVID-19 and the prevailing economic downturn has put pressure on tariff.

As for the reduction in the Fuel Clause Charge, it is mainly to reflect movements in fuel market prices. "Though the Basic Tariff for 2021 will increase, the Net Tariff will be maintained at 126.4 cents per unit of electricity which is far below the forecasts made in the Five-Year Development Plan," Mr. Wan stressed.

Mr. Wan also noted the challenges faced by the community and different business sectors under the current economic downturn. Alongside the tariff freeze, HK Electric will continue to provide relief measures and energy-saving programmes including the distribution of dining coupons to underprivileged households, as well as programmes like NGO Catering Subsidy, SDU Electricity Charges Relief and other energy conservation initiatives. Further details of the measures will be announced later.

HK Electric has achieved good progress with the "coal-to-gas" transition to combat climate change and improve Hong Kong's air quality. With the commissioning of the new gas-fired unit L10 early this year, the proportion of the Company's gas-fired generation has reached about 50% of the overall electricity generation, and various emissions have been reduced significantly. When the other two new gas-fired units and the offshore liquefied natural gas terminal currently under construction are commissioned in the next few years, the proportion of our gas-fired generation will rise further to about 70% with corresponding reductions in emissions.

2021 Net Tariff Unchanged


2020 (¢/unit)

2021 (¢/unit)

Adjustment (¢/unit)

Basic Tariff




Fuel Clause Charge




Net Tariff before Special Rebate




Special Rent & Rates Rebate

- 0.4



Net Tariff after Special Rebate