Hong Kong power firms to raise fuel charges from September amid geopolitical tensions

Hong Kong power firms to raise fuel charges from September amid geopolitical tensions CLP Power and HK Electric announce higher fuel-related charges, while offering rebates and subsidies to ease the burden on households Hong Kong’s two electricity suppliers will raise fuel-related charges from next month, citing geopolitical tensions and volatility in international energy markets. As electricity costs rise, CLP Power and HK Electric have introduced rebate and relief schemes as grass-roots households face higher air-conditioning expenses after a summer with an unusually large number of very hot days. HK Electric, which supplies electricity mainly to Hong Kong Island and Lamma Island, said on Tuesday that its fuel clause charge would rise to 60.7 Hong Kong cents (7.74 US cents) per kilowatt-hour (kWh) in September. The charge will increase by 3.4 cents, or 5.9 per cent, from August, marking the fourth consecutive monthly increase since May. Together with the basic tariff, the average net tariff will rise to 188.6 cents per unit in September, an increase of 1.8 per cent from August. “International energy prices remain volatile, with spot prices for liquefied natural gas having more than doubled compared with levels before the geopolitical developments earlier this year and still rising,” HK Electric said in a statement. “As fuel costs are progressively reflected through the [fuel clause charge] mechanism, the [fuel clause charge] is expected to remain at a relatively high level in the coming months.”