Hong Kong’s electricity bills are expected to reach a short-term peak in August due to the Middle East conflictsaid an advisory chairman for energy.
Hong Kong’s current electricity tariff has not yet reflected the impact of the conflict in the Middle East, which erupted in late February, said Simon Wong, chairman of the government’s Energy Advisory Committee. said on TVB on Sunday.
The fuel surcharges of the two Hong Kong utility giants are based on a cost recovery mechanism and are adjusted according to the average cost of the past three months, he explained.
“Based on my calculations, electricity costs may reach a short-term peak in August. After that, costs may fluctuate at high levels, possibly easing a bit,” he said.
The total electricity tariff will be 5 to 10 percent higher than before the conflict in the Middle East, he added.
CLP Power announced Tuesday that the fuel cost adjustment for June would be 42.6 cents per kilowatt-hour (kWh), from 40.4 cents in May.
The 5.4 percent increase is the third consecutive monthly increase since April.
Another power company, HK Electric, said on Friday that the fuel clause rate for June would be 31.3 cents per kWh, a 20.4 percent increase from May.
The service provider said the adjustment began to reflect the significant increase in international fuel prices caused by the war in the Middle East.
However, due to a “lagged effect”, the current figures do not yet fully capture the change in fuel costs and the fuel adjustment fee is expected to continue to rise in the coming months, he added.
