Editorial | Cuts by Hong Kong power giants offer light relief for those left to struggle
- Firms’ decision will provide respite for city businesses and households, but they could have done more under a system seen as increasingly unfair
What goes up must come down is a saying that rarely applies to utility bills, but in a pleasant surprise to Hong Kong households and businesses, the tariffs of two power companies will be cut for the first time since 2017. The reductions are purely because fuel prices have dropped significantly.
In fact, the basic charges are still spiralling above inflation, thanks to a profit scheme that puts energy users in a disadvantaged position.
The net tariffs are to be slashed by 16 per cent by HK Electric and 7.4 per cent by CLP Power, starting from next year. The bills would have been higher had it not been offset by a drop in international fuel prices over the year.
HK Electric, which serves Hong Kong Island, is raising its basic tariff by 4.4 per cent while CLP Power, which covers Kowloon, the New Territories and most outlying islands, will put its up by 3.1 per cent because of the companies’ “capital investment and cost escalation”.
The expected cheaper bills will provide welcome respite for businesses and individuals still struggling to recover after the pandemic. Earlier this week, the two companies rolled out a package of concessions and green initiatives for low-income groups.
Given their sound finances, they could have done more.
