This June 16, 2014 photo shows a CLP electricity transmission tower in Fanling, Hong Kong. (EDMOND TANG / CHINA DAILY)

HONG KONG – Electricity tariff in Hong Kong is still competitive despite increases in monthly fuel cost adjustments, the secretary for the environment and ecology said on Wednesday.

Replying to a question in the Legislative Council, Secretary for the Environment and Ecology Tse Chin-wan said current tariffs per unit of electricity of CLP Power Hong Kong and Hongkong Electric Company are HK$1.42 and HK$1.52 respectively, "whereas the respective residential tariffs in Singapore, Sydney, London and Berlin were HK$1.74, HK$2.03, HK$3.00 and HK$3.66" in October.

"Hong Kong has enjoyed a stable electricity supply with relatively moderate increases in tariffs, thanks to our regulatory regime," he said.

International energy prices keep surging, with individual market prices of crude oil, natural gas and coal registered an increase of 100 percent, 200 percent and 500 percent respectively in the past two years, he said. International fuel prices accelerate rapidly amid the energy crisis aggravated by the Russia-Ukraine conflict, he added.

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This led to power tariff in major cities such as Singapore, Tokyo and London ranging from over 20 percent up to even 70 percent, and Hong Kong is no exception, he said. 

Hong Kong has enjoyed a stable electricity supply with relatively moderate increases in tariffs, thanks to our regulatory regime.

Tse Chin-wan, Secretary for the Environment and Ecology, HKSAR

The situation in Hong Kong is relatively better than other places due to the Scheme of Control Agreements (SCAs), an arrangement the government reached with the city’s two power companies to regulate the electricity market of Hong Kong.

"Following the increases in monthly fuel cost adjustments, Hong Kong's overall net tariffs in November also saw an increase of nearly 20 percent over January this year,” said the secretary.

To alleviate the burden of electricity tariffs on the residents, the government will continue to provide a monthly relief of HK$50 for each eligible residential electricity account since 2019 until the end of 2023, he said. 

A new round of electricity charges subsidy of HK$1,000 in total for residential accounts was also launched in June this year until May next year, he mentioned.

"In addition, the two power companies have provided support measures under their respective Community Energy Saving Funds to assist customers from small and medium-sized enterprises and disadvantaged groups," he added.

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In order to facilitate and promote "smart electricity consumption", CLP and HK Electric are continuing to install smart meters for their customers in phases, and expect completion by 2025, the secretary said, adding that nearly two million customers are currently using smart meters which help them monitor and manage electricity consumption more effectively, thereby encouraging energy saving.