Date
21 July 2017
CLP Power president Paul Poon did not say if there will be a freeze on tariffs or an increase below the inflation level. Photo: HKEJ
CLP Power president Paul Poon did not say if there will be a freeze on tariffs or an increase below the inflation level. Photo: HKEJ

CLP seen imposing mild tariff hike for 2016

CLP Power Hong Kong Ltd., the local arm of CLP Holdings Ltd. (00002.HK), is expected to raise its tariff only mildly next year given the low fuel cost environment, the Hong Kong Economic Journal reported on Tuesday.

Paul Poon Wai-yin, the local arm’s president, said the company has “a good news” in response to reporters’ queries about the level of tariff hike the company has proposed to the government for approval.

Poon, however, did not say if the “good news” means a freeze on fees or an increase below the inflation level.

The company is currently working on a new natural gas project in Lung Kwu Tan (龍鼓灘) in Tuen Mun, which is still awaiting environmental evaluation and feasibility reports.

The project is aimed at achieving the company’s goal of producing at least 50 percent of power with natural gas by 2020. 

The construction of generators should start in the second half of next year if the 2020 target is to be met, Poon said.

The project cost will be amortized in a 10-year period and is unlikely to have a huge impact on tariffs, the company said.

[Chinese version中文版]

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