25th September 2023 – (Hong Kong) In response to the continuous decline in international fuel prices, both power companies in Hong Kong have announced a reduction in fuel adjustment charges for October. Hongkong Electric (HK Electric) will lower the rate to HK$0.548 per kilowatt-hour (kWh), a 12.2% decrease from September’s rate of HK$0.624 per kWh. Meanwhile, CLP Power (CLP) will decrease its rate to HK$ 0.522 per kWh, a monthly adjustment of 4%. This adjustment is expected to provide relief to consumers and contribute to stabilising global fuel prices.
Both power companies have been consistently decreasing fuel adjustment charges over the past five months. HK Electric has reduced its fuel charges by a total of HK$0.277 per kWh since January, resulting in an average net electricity rate of HK$1.693 per kWh for October, compared to HK$1.970 per kWh in January, representing a drop of 14.1%. CLP has also decreased its fuel charges by HKD 0.098 per kWh since January, resulting in an average net electricity rate of HK$1.459 per kWh for October, down from HK$1.544 per kWh in January.
To illustrate the impact of these adjustments, let’s consider a typical three-person household on Hong Kong Island with a monthly electricity consumption of 275 kWh. After deducting government subsidies and special electricity tariff subsidies provided by HK Electric, their net electricity bill for October will be HK$212.4, a reduction of HK$76.2 compared to January’s bill of HK$288.6. Furthermore, for the first eight months of this year, HK Electric has provided over 630,000 bills with zero electricity charges to residential customers, accounting for nearly 17% of all residential bills. Depending on the month, electricity consumption, and subsidies received, an estimated 60,000 to 90,000 residential customers have been exempted from paying electricity bills each month during the first eight months of this year.