Hong Kong electricity price rises will be lower than inflation, environment chief says, reveals talks under way to build nuclear power plant in mainland China
- Investment expenditure for city’s two power firms has been cut over next five years to curb price hikes, environment minister Tse Chin-wan says
- Tse reveals authorities exploring possibility of building nuclear plant over border to supply city with energy by 2035
Increases in Hong Kong’s electricity prices will be lower than inflation in the coming years, the environment chief has said, while also revealing authorities are engaged in talks to build a nuclear power plant in mainland China to help the city meet its carbon reduction goals.
Secretary for Environment and Ecology Tse Chin-wan said the government had cut the investment expenditure of the city’s two electricity providers for the next five years to curb price hikes.
“We believe that we have more control over their basic tariff increments in the future, and we are confident that the increase will be lower than inflation rates,” Tse told a radio show on Saturday.
The two power companies announced last month that they would reduce their fuel charges but increase basic tariffs by about 2 per cent based on their capital expenditure plans.
Taking into account existing rebates, residential bills for CLP Power, which supplies energy to Kowloon and the New Territories, will be cut by 7.4 per cent from next year.
Similarly, charges for HK Electric, serving Hong Kong and Lamma islands, will be reduced by 16 per cent.
Tse said the government did not include proposals by both power companies to build offshore wind farms in its investment plans after a midterm review due to high construction and storage costs, which would exert pressure on electricity bills.
Authorities are looking to import more nuclear energy from the mainland instead, according to the minister.
