Green group sees sharp increases in power bills

The CEO of the World Green Organisation, William Yu, says he expects to see double-digit increases in electricity tariffs as Hong Kong power firms transition to cleaner fuel.

Yu made his comments on Tuesday as the government reviews proposed adjustments to next year’s tariffs submitted by Hong Kong Electric and CLP Power.

Speaking on RTHK’s Hong Kong Today programme, Yu said the likely increase in tariffs were a result of the transition from coal to natural gas, as well as a recent surge in oil and natural gas prices.

“When you look at the price increase in natural gas, as well as the increase in our net asset value, I think we could reach a double-digit increase in the electricity tariff. We can see a big change in the energy mix,” Yu told RTHK’s Janice Wong.

Under the scheme of control agreement with the government, the rate of return of the two companies is linked to their net asset value, which will increase as they invest in new means of power generation.

Both CLP Power and Hong Kong Electric both froze their tariffs last year.