We use nuclear electricity, and utilise coal, gas and oil as fuel to supply electricity for our customers to use. We pay for nuclear electricity as part of CLP's operating costs which are recovered through the basic tariff. Fuel used in our power stations is charged as fuel expenses and also recovered from customers in the basic tariff through a standard cost of fuel. However, as these costs will vary over time, the total fuel costs may be higher (or lower) than the standard cost of fuel, so the balance will be charged (or rebated) to customers through the Fuel Cost Adjustment mechanism.
