HK Electric announced today that despite rising fuel costs anticipated for next year, the Company will be freezing tariffs for 2010 to help Hong Kong recover from the financial crisis.

Addressing a meeting of the Legislative Council's Economic Development Panel, HK Electric's Managing Director, Mr. Tso Kai-sum said that the average net tariff will be kept at 119.9 cents per unit of electricity in 2010, including an average basic tariff of 94.5 cents and a fuel clause charge of 25.4 cents per unit.

In January this year, HK Electric's electricity tariffs had been reduced by an average of 5.9% when the new Scheme of Control Agreement took effect. This is against the background of double-digit tariff increases recorded in some overseas electricity markets during the year.

Mr. Tso remarked that the Company has committed to gradually reduce emissions in power generation by increasing the use of natural gas. Gas-fired generation is expected to double from about 15% of the Company’s total output to 30% in 2010. As the price of gas is higher than that of coal, fuel costs are expected to continue rising next year, posing a big challenge to the Company’s operation.

"In spite of this, we have decided to freeze electricity tariffs across the board for all domestic and commercial customers. We hope this will help Hong Kong recover from the financial crisis while minimising the impact on our customers," Mr. Tso said.

Mr. Tso reiterated HK Electric's confidence in meeting the 2010 emission targets laid down by the government. Apart from using more natural gas, additional flue-gas desulphurisation plants and low nitrogen oxides burner for coal-fired units will continue to be put into service next year to reduce emissions.

"Our power supply in 2010 will basically come from 'clean energy' with emissions in sulphur dioxide, nitrogen oxides and respiratory suspended particulates reducing by 40 to 70% in the year as compared with 2005 levels," he added.


Average Tariff for 2010
(Cents/ kWh)