Comment on electricity tariff

Two power companies announced next year’s electricity tariff price today (10th December). The average increase of CLP’s electricity tariff would be 3.9% while HK Electric remains the same price as this year. Dr. William Yu, CEO of WGO indicated that next year tariffs are similar to the organisation’s academic forecast previously. As both companies need to meet the 2015 emission limit, the use of the natural gas will be increased. This also means the fuel price will also increase. Dr. Yu suggested the current fuel costs estimation mechanism should be revised from annual estimates to quarter estimates in order to reflect the updated price. This can avoid power companies accumulate much surplus within the fuel clause account. Besides, the Natural Gas Stabilization Fund should be established in the long run to reduce the tariff’s influences to the residents’ livelihood.