Press release from Power Assets (formerly HK Electric):

"HK Electric, a subsidiary of Power Assets Holdings Ltd, today presented its tariff review for 2012 to the Legislative Council including a 1 cent adjustment in basic tariff and 6.8 cent adjustment in fuel clause charge per unit of electricity. Following the adjustment, the net tariff would rise by 6.3% from 123.3 cents to 131.1 cents (see table below).

The Managing Director of HK Electric, Mr. Tso Kai-sum said in a Legco meeting that international fuel prices have remained high in recent years, driving up fuel costs for the company which uses coal and liquefied natural gas (LNG) as the main fuel sources for power generation.

As coal and LNG prices have gone up by about 20% and 47% respectively since end 2010 and the upward trend is expected to continue in 2012, the company found it would need to adjust the fuel clause charge.

“The vast majority of the 7.8 cent increase per unit of electricity for 2012 would go in meeting higher fuel prices which are subject to market fluctuation and beyond our control. Fuel costs are a pass through and do not form part of HK Electric’s profit,” Mr. Tso said...."

Tariff Review for 2012 [13 December 2011]

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Well, several critical media enquiries and maybe the Liberal Party protesters assembling outside the HK Electric Centre HQ above Central today - a most unusual sight for their staff - has caused another media release to be sent out to fight the negative publicity generated by the substantial tariff increase just announced the other day. I've just received the release, it's not even online on their website yet:

"HK Electric 2012 Tariff Review

In response to media enquiries on HK Electric’s 2012 tariff review, a spokesman for HK Electric said that the Company decided to lower the rate of the tariff increase from nearly 8% as originally proposed to the current 6.3% following discussions with the Government before the Legislative Council’s Economic Development Panel meeting on 13 December (Tuesday). This was made possible by further increasing the negative balance in the Fuel Clause Recovery Account.

The spokesman explained that about 90% of the 7.8 cent increase per unit of electricity for 2012 would go in meeting higher fuel prices. “With a view to containing the impact of the tariff adjustment on the public as well as small and medium-sized enterprises, while also encouraging energy conservation, HK Electric will further enhance the current tariff structure where customers using more electricity are charged higher tariffs at a progressive rate,” he said.

The spokesman said, after a detailed analysis, the Company will lower the tariff adjustment for its domestic customers. Those using 150 units or less a month (the lowest consumption band) will have their tariff increased by 2.64%, or $3.6 or less a month. Following this enhancement, 90% of HK Electric’s domestic customers (using 900 units of electricity or less a month) will have their tariffs increased by 4.97 % or less, lower than the local inflation rate. (See Table 1)

To achieve this, the Company will reduce the basic tariff for all domestic customers on the first 500 units of electricity consumed, where the reduction for the first 150 units is as much as 4.4 cents per unit.

The enhanced tariff structure will also ease the burden for the majority of the Company’s non-domestic customers as about 70% (using 1,700 units or less a month) will have their tariffs increased by 6.08% or less ($129.5 or below more a month), as compared with the 6.3% increase on average..."<HR>
The gist of this release, plus all the tables and figures that accompanied it:

Instead of 6.3% increase, it'll be less than 5% for 90% of us domestic customers.

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HK Electric or Power Assets, as it is now called, made over HK$7 billion in profit, in 2010.

Tariffs protect their huge bank of cash.

I think capitalism sucks.

HK Electric Announces Tariff Review for 2013 [11 December 2012]

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. (Details see chart below)

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.

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How does HK Electric work out who has the higher tariffs? I mean you could be one person living in a small flat or an entire clan living in a village house. Do you know if they base the tariff on floor size (always questionable in HK anyway), or what?

Txs if anyone knows the answer.

i am all for higher tariffs if that means cleaner fuel, like more gas and less coal being burnt.
Electricity costs too little in HK. I haven't paid a cent since the introduction of the subsidy. It's ridiculous.
Cheap electricity leads to waste, and HK is one of the most wasteful cities on earth!
Enough with freezing temperature in shopping malls and offices, and the constant noise of my neighbours' TV which is on from 8 am to 12 pm even when nobody is watching it.

Agreed, as has been shown with car fuel too, higher prices lead to more economical consumption.

Also, I don't understand why they increase the price by less than the inflation rate, basically they are decreasing the rate.

I don't get it.

I used to live in MId Levels, and my bills were China Electric.

I moved to Lamma and I'm powered by HK Electric, and my bills were double that they were on Hong Kong Island. Was bizarre to me, as I used a LOT more electricity on HK Island. On Lamma I tend to open the windows and put the fan on if necessary.

There was an article few years ago in the SCMP and other local newspapers as to how HK Electric tariffs were almost doubt CE.

And the Power Station is on LAMMA ISLAND.....

I think Lamma Residents should be exempt from Electric charges

Check what else you are using, probably your water heater or smth else can be using lots of power.

The prices are the same:

CLP: $1.02 (first 400 units)
HKE: $0.93 (first 150 units), $1.05 (150-300 units)

Thanks for giving us something else to worry about!

So where do I find one of those dishonest electricians who could jerry-rig our power to the downstairs neighbour's meter?

But as she reads this website occasionally as well, we should probably not discuss our illegal activities publicly in this forum....

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