(To watch the full press conference with sign language interpretation, click here.)

The Environment Bureau and the city’s two power companies announced today the electricity tariff adjustments for 2022.

Subsequent to negotiations with the Government, from January 1, 2022, Hongkong Electric Company will increase its average net tariff by 7% to 135.3 cents per kilowatt-hour, while CLP Power and Castle Peak Power will raise the average net tariff by 5.8% to 128.9 cents per kilowatt-hour.

At the same time, the two power companies will freeze the basic tariff rates, postpone the recovery of fuel costs and provide special rebates to reduce the final net tariff in 2022.

According to the power companies’ estimation, the average monthly tariff increase next year for a typical three-member household will be about $20 to $24.

At a press conference today, Secretary for the Environment KS Wong said: “The increase is solely due to surging fuel prices.”

Facing rising international fuel prices, various regions have increased their energy prices and electricity tariffs. Likewise, Hong Kong’s two power companies are under tremendous pressure for tariff adjustment, Mr Wong explained.

To alleviate the impact, he told reporters that various measures are already in place.

“The Government has provided monthly electricity charges relief of $50 to each residential electricity account since 2019, and it will continue to be distributed next year and the following year.”

Additionally, the power companies will bear large deficit balances in their fuel clause recovery accounts and use hefty resources from the tariff stabilisation funds. They will also continue to use their community energy saving funds to help disadvantaged groups and small and medium-sized enterprises.

Meanwhile, the Chief Executive-in-Council today gave approval for CLP Power to increase the estimated total capital expenditure as approved in its 2018-23 development plan by $3.2 billion.

“The two power companies need to invest a substantial amount of capital to build the infrastructure required for the production, reception and storage of zero-carbon energy, which will inevitably put upward pressure on electricity tariffs,” said the environment chief.

The power companies need capital to support Hong Kong’s overall development, such as supporting the Government’s initiatives and the rapid development of data centres, he added.

He also urged all businesses and the public to step up efforts to save energy in daily life, and expressed hope that everyone will strive to save electricity, save money and reduce carbon emissions to mitigate climate change.