The Government approved the 2014 electricity tariff review today. Hongkong Electric’s average net tariff rate will remain unchanged, while that of CLP Power will rise 3.9%.
The review was approved as part of the power companies' 2014-18 development plans.
Secretary for the Environment KS Wong said the Government critically reviewed the utilities’ proposals and accepted only those on capital projects which are necessary to ensure a reliable, safe and environmentally friendly electricity supply at reasonable costs.
After detailed discussions, Hongkong Electric's originally proposed capital expenditure in the 2014-18 development plan was reduced by 49% from $25.4 billion to $13 billion, while CLP’s was reduced by 21% from $43.3 billion to $34.1 billion.
Mr Wong said the Government has asked the companies to reduce the pressure on tariffs in the coming years.
The Government will later consult the public about different fuel mixes and their cost and environmental implications, and safety and security.