Relief can help reduce heat of big Hong Kong power bills
- With customers of city’s two energy companies having to pay more in these hard post-Covid times, government assistance is required
Hongkongers are at the mercy of the power suppliers when it comes to electricity tariffs. Neither the government nor the legislature can effectively monitor the adjustments, thanks to a much criticised scheme of control that guarantees profits for the companies.
The latest increases announced by CLP Power and HK Electric have added to the burden on many who are still struggling under the shadow of the pandemic.
Coming just three months after a steep tariff increase in January, the fuel surcharge rises of 1.29 per cent and 4.73 per cent have left users hot under the collar. Bills of household customers of CLP Power will increase by an average of HK$5.70 to HK$536.29 per month.
Those served by HK Electric face a rise of HK$16.02 to HK$706.43.
Comprising a mix of a base rate, fuel surcharge and rebate, the complicated tariff structure has frustrated many users over the years. Perceptions are further compounded by a notorious scheme that leaves little room for government intervention.
If there is any comfort, it would be the suggestion that the surcharge may ease later, should the recent drop in oil and coal prices continue. But since the latest rise is based on changes in the previous quarter, the public still has to put up with increases despite the recent turnaround.
The actual additional monthly spending for an average household may not be substantial. But larger businesses will feel the heat as their energy bills creep up.
As Financial Secretary Paul Chan Mo-po recently acknowledged, many citizens and companies are still facing pressure as the city embarks on the road to post-Covid recovery.
The additional subsidies in the government budget for eligible residential households are therefore timely. Apart from extending the existing relief of HK$50 a month to each account until the end of 2025, a new grant of HK$1,000 will also be made.
Hong Kong electricity suppliers raise fees 3 months after last increase
The measures will benefit some 2.9 million households at a cost of HK$6.4 billion. Commercial users, however, are not covered; and businesses may pass the additional cost to customers.
The move towards renewable energy and natural gas means power prices may soar further. Unless there are better ways to keep adjustments affordable, the public can only turn to the government for some relief.
