HK Electric has announced a nearly 34 per cent rise in its fuel charge, after a double-digit increase last month, as the war in the Middle East contributed to a “significant rise” in global fuel prices.
The utility, which mainly serves Hong Kong Island and Lamma Island, also warned on Thursday that the charge was expected to continue rising.
HK Electric announced it would adjust its fuel charge for July to 41.9 HK cents (5.3 US cents) per unit of electricity, up from 31.3 HK cents in June, an increase of 33.9 per cent.
“The adjustment reflects the significant rise in international fuel prices driven by the Middle East conflict. However, due to the ‘deferred effect’, the current level has not yet fully reflected the changes in fuel costs,” the company said.
“With the situation in the Middle East remaining uncertain, the [fuel clause charge] is expected to continue to increase in the coming months.”
HK Electric’s net tariff – the total price paid by consumers – is generally calculated by combining the basic tariff and the fuel clause charge.
The company cut fuel surcharges in May to 26 HK cents per kilowatt hour, citing the deferred effect under the monthly adjustment mechanism based on January’s average fuel costs.