The Chief Executive-in-Council today approved the development plans for the next five years and the 2024 Electricity Tariff Review of CLP Power Hong Kong and the Hongkong Electric Company. In January 2024, CLP’s net tariff will be reduced on average by 7.4%, while that of Hongkong Electric will be cut by 16%, compared with January this year.

In addition, the Government proposed that the two companies, following rounds of negotiations, agree to three major changes to the Scheme of Control Agreements, including the introduction of a Special Tariff Relief Mechanism during an energy crisis; introduction of a penalty scheme for large-scale electricity supply interruptions; and enhancing transparency on information disclosure to the public.

Speaking to the media after attending a Legislative Council Panel on Environmental Affairs meeting today, Secretary for Environment & Ecology Tse Chin-wan pointed out that the Special Tariff Relief Mechanism demonstrates that the two power companies agree they have to take up certain social responsibilities.

Mr Tse also described the introduction of the penalty mechanism as a breakthrough.

All along, bonuses have been used to encourage the electricity companies to perform better, but now if they run into a major interruption situation, there will be a penalty, he explained.

The environment chief added that thanks to this new system, if a case like last year's CLP power cable incident in Yuen Long happens in the future, the company may be subject to a penalty.