Hong Kong households will pay less for electricity next year after the city’s two power companies announced tariff reductions of around 2 per cent.
CLP Power and HK Electric announced at a press conference on Tuesday that their net electricity tariffs will be reduced by 2.6 per cent and 2.2 per cent, respectively, starting in January 2026.
HK Electric, which supplies electricity to Hong Kong Island and Lamma Island, will charge 163.3 cents per kilowatt-hour (kWh). CLP Power, which serves the rest of the city, will charge 140.6 cents per kWh.
Secretary for Environment and Ecology Tse Chin-wan, who attended the same press conference, estimated that a three-person household using 275 kWh would save around HK$10 on its electricity bill per month.
CLP Power Managing Director Joseph Law said the company understood the public’s concerns over electricity prices and that he hoped the reduction would alleviate residents’ living expenses and the operating costs of small and medium-sized enterprises (SMEs).
In Hong Kong, the net electricity tariff consists of a basic tariff and a fuel clause charge, which is reviewed monthly to reflect the actual cost of fuels in a timely manner.
At Tuesday’s press conference, both electricity providers announced an increase in the basic tariff in the coming year and a decrease in the fuel clause charge, resulting in a reduced net tariff.
CLP Power’s basic tariff will rise by 3.3 per cent to 101.2 cents per kWh, while the fuel clause charge will drop by 14.9 per cent to 39 cents per kWh. The reduction comes after international fuel prices fell further this year, Law said.
Similarly, HK Electric will raise its basic electricity charge by 4.1 per cent to 127.9 cents per kWh, while the fuel clause charge will be lowered by 8.7 per cent to 35.4 cents per kWh.
The environment minister said the government had required the two power companies to continue utilising their community energy-saving funds to provide subsidies and minimise the pressure from electricity charges on underprivileged groups and SMEs.
Tse added that although the average net electricity charge would be slightly reduced, the government continued to encourage the public to form “green living habits” and choose products with high energy efficiency.
This can further lower electricity expenses, lower carbon emissions and protect the environment, he said.
