Electricity bills to hit short-term peak in August, says Hong Kong energy adviser

“Hong Kong’s electricity bills are expected to hit a short-term peak in August due to the Middle East conflict , an energy advisory chair has said. Hong Kong skyline at night. Photo: Kyle Lam/ HKFP. Hong Kong’s current electricity tariff has yet to reflect the impact of the Middle East conflict, which broke out in late February, Simon Wong, chair of the government’s Energy Advisory Committee, said on TVB on Sunday. The fuel surcharges of Hong Kong’s two utility giants are based on a cost-reimbursement mechanism and are adjusted according to the average cost of the past three months, he explained. “Based on my calculation, electricity costs may reach a short-term peak in August. After that, costs might fluctuate at a high level, with the possibility of them easing slightly,” he said. The total electricity tariff will be 5 to 10 per cent higher than before the Middle East conflict, he added. CLP Power announced on Tuesday that its fuel cost adjustment for June would be 42.6 cents per kilowatt-hour (kWh), up from 40.4 cents in May . Simon Wong, chair of the Energy Advisory Committee. Photo: HKFP Screenshot. The increase of 5.4 per cent is the third consecutive monthly hike since April. The other power company, HK Electric, said on Friday that its fuel clause charge for June would be 31.3 cents per kWh, an increase of 20.4 per cent from May. The utility provider said the adjustment began to reflect the significant surge in international fuel prices caused by the Middle East war. However, due to a “lag effect,” the current figures do not yet fully capture the shift in fuel costs, and the fuel adjustment fee is expected to continue climbing in the coming months, it added.

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