Hong Kong’s CLP Power increases fuel surcharge for 2 consecutive months

“Hong Kong’s CLP Power will increase its electricity fuel surcharge for the second consecutive month amid rising oil prices , bringing the total electricity tariff to 141.6 cents per kilowatt-hour (kWh). CLP Power. Photo: Kyle Lam/HKFP. CLP Power, one of the city’s two electricity companies, announced on Wednesday that it would increase the fuel cost adjustment starting from May 1 to 40.4 cents per kWh, a 0.6-cent increase from April. According to the utilities company, the fuel cost adjustment is based on the difference between forecast and actual fuel prices, including the prices of oil, gas and coal. CLP Power increased the fuel surcharge to 39.8 cents per kWh on April 1 – an increase of 0.6 cents. The other electric company, HK Electric, said on Friday that it would lower its fuel surcharge in May to 26 cents per kWh, a 4.4-cent decrease from April. It was the second consecutive month that HK Electric lowered the surcharge. Hong Kong skyline of the city’s public housing flats. File photo: Kyle Lam/HKFP. The reduction in the fuel surcharge “is mainly attributable to the inherent ‘deferred effect’ under the monthly adjustment mechanism,” the company said. However, the surcharge is expected to rise significantly starting from mid-year, according to HK Electric, which supplies electricity to Hong Kong Island and Lamma Island. CLP Power serves the rest of the city. The Middle East war, which broke out in late February, has had a major impact on utility prices. In November last year, t he two power companies announced tariff reductions of around 2 per cent.

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