Electricity tariffs to rise by up to 5.2 percent

HK Electric is to raise tariffs by 5.2 percent, and CLP by 2.5 percent. Image: RTHK

The city's two power companies have announced the tariff increases they are planning for next year, with HK Electric to raise prices by 5.2 percent, and CLP by 2.5 percent.



But the two firms say subsidies offered by the government should offset the increases, so people won't see their bills go up.



HK Electric added that it will exclude some of its corporate customers from the increase.



The company's managing director, CT Wan, told lawmakers that almost all its residential customers will actually pay less for their electricity in 2020 than they did this year.



"Over 45 percent of the customers will not need to pay any tariff next year and households using 1,000 units of electricity [per month] will pay HK$100 less. So all in all, all residential customers will be paying less next year," Wan said.



CLP, meanwhile, said it is going to introduce a series of programmes next year to help some of the city's poorest residents.



"Hong Kong is facing a lot of challenges. In order to provide timely support to relieve hardship and also to cater for their needs, in 2020 CLP will allocate over HK$200 million... to help the needy, SMEs, disadvantaged students and the underprivileged," said managing director Chiang Tung-keung.



"We hope that more corporations will echo our initiatives which will generate momentum in reviving our economy."



In August, the government announced a one-off electricity subsidy of HK$2,000 per household.



Financial Secretary Paul Chan said the move, part of a HK$19 billion package of sweeteners and waivers, was to help the city ride out the economic downturn, although analysts said it was a response to public anger amid the extradition bill crisis.



Last week, the government also announced that it will subsidise three quarters of the electricity bills of companies, capped at HK$5,000 per month for a period of four months.