Despite falling crude oil prices, Hong Kong’s biggest power supplier plans to raise electricity rates by 3.1 percent in 2015.
CLP Holdings, which services Kowloon, Lantau and the New Territories, said the proposed tariff rise is far lower than the 11.8 percent hike it projected in its development plan last year, Ming Pao Daily reported Wednesday, citing the presentation made by CLP managing director Paul Poon at the Legislative Council’s economic affairs committee.
Meanwhile, Hongkong Electric, which supplies Hong Kong Island and Lamma, will keep the current power rates unchanged next year, as falling fuel costs offset rising operation expenditures, Wan Chi-tin, managing director of Power Assets, was quoted as saying.
The company is a subsidiary of Power Assets which is controlled by Li Ka-shing’s Cheung Kong group.
In seeking a tariff hike, CLP said it expects the price of natural gas, which it uses for power generation, to grow by 50 percent to HK$15.45 billion (US$2 billion) next year.
However, Dr. William Chung, director of energy and environmental policy research center at the City University of Hong Kong, questioned CLP’s fuel price estimate, saying its fuel expenditure is expected to rise by only 35 percent at most.
Chung said the company calculated the fuel cost based on the most expensive rates, particularly on supplies from the second line of West-East pipeline.
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