The Executive Council had approved the 2014-2018 capital expenditure and price hike plans of CLP and HK Electric. The electricity tariff of HK Electric will remain unchanged in 2014. The company projected the electricity fee will remain unadjusted in 2015-2018. Besides, HK Electric was granted HK$13 billion as capital expenditure. For CLP, the group will raise the electricity tariff by 3.9% or HK4.2 cents in 2014, expecting to lift the electricity charges by 1.8% every year during 2015-2018. Besides, the group was granted HK$34.1 billion as capital expenditure.
Representative of HK Electric pointed out the power tariff stabilisation fund will deplete this year, imposing pressure on electricity charges. However, fuel prices have been stable in 2013, offsetting the HK7.1 cents price hike.
Representative of CLP stated the increasing electricity fee reflects the price of the new natural gas is expensive, coupled with the cost pressure caused by the emissions target and climbing demands for natural gas in newly developed districts. If the company does not lift the electricity price, its power tariff stabilisation fund will record negative balance in 2015.
AAStocks Financial News
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