Hong Kong environment minister vows to limit increase in electricity tariffs in face of double-digit percentage rise in bills amid global energy crisis
- Secretary for Environment and Ecology Tse Chin-wan says authorities in talks with city’s two power companies, but details only available by early December
- He gives assurance that city spared from spending enormous sum to reopen coal plants amid natural gas shortage, as it has been transitioning away from fuel type
Hong Kong’s environment minister has pledged to limit the increase in electricity tariffs amid fears households may face a double-digit rise in bills because of a global energy crisis.
Secretary for Environment and Ecology Tse Chin-wan on Friday said authorities were still in talks with the city’s two power companies but the details of a new tariff would be announced by early December.
“The electricity tariff takes up 2 per cent of Hong Kong families’ median household income at the moment, it shouldn’t be too big of a burden when compared with Europe,” he said. “The government’s responsibility is to keep prices as low as possible and this is the direction we are taking.”
Tse was referring to the estimate made by local energy economist William Yu Yuen-ping, who earlier said the electric tariffs could expect a double-digit rise thanks to the increasing prices of natural gas.
“I estimate that the electricity tariffs next year will rise at a range of between 20 and 30 per cent,” Yu, the chief executive of NGO the World Green Organisation, told the Post earlier on Friday. “You can tell from the ascending trend in the energy futures in the recent months.”
Energy supply has become a global concern this year, as prices soar amid the ongoing war between Russia and Ukraine and fuel costs surge. Winter energy expenditure in some European countries is expected to take up as much as 20 per cent of family expenses.
Statistics from the United Nations Food and Agriculture Organisation show that Russia is the world’s second-largest natural gas supplier, with Ukraine in 36th place.
