Hong Kong residents to pay up to 7 per cent more for power from January
- Environment minister Wong Kam-sing says international fuel prices have increased sharply and cities have had to increase power tariffs
- Power bills set to keep rising in coming years as city moves away from coal, but prices should stabilise as more clean energy sources added to mix, NGO says
Hong Kong’s two power companies will raise rates by as much as 7 per cent beginning in January, avoiding a double-digit increase by dipping heavily into their backup funds in what one analyst called an unprecedented move.
But keeping the increase low now could set up residents to pay more in the coming years as the city makes the expensive transition to alternative fuel sources as part of a wider goal of becoming carbon neutral by 2050.
“As international fuel prices have increased sharply, many other cities have also had to increase their power tariffs,” Wong said, flanked by top executives from CLP Power and HK Electric. “Cities like Singapore, Tokyo, New York and London have seen a double-digit rise in their electricity bills, with some even reaching nearly 20 per cent.”
Natural gas, Hong Kong’s main power generation source, jumped in price by at least 65 per cent in the first half of the year.
