1. What will the tariff from October 2018 to December 2019 be?

  • From 1 October 2018, the Average Basic Tariff will be reduced by 3.7% to 91 cents per unit of electricity. Due to the substantial increase in fuel prices, the Fuel Cost Adjustment will be adjusted upwards by 5.8 cents to 27.8 cents per unit of electricity. With the offering of the Rent and Rates Special Rebate* of 1.1 cents per unit of electricity to all customers, the Average Net Tariff will be HK$1.177 per unit of electricity, equivalent to an upward adjustment of 2%.
  • We will continue to offer the Energy Saving Rebate Scheme to help customers with low consumption levels and encourage energy conservation.

Details of Tariff from 1 October 2018 to 31 December 2019

Tariff Component

Tariff from

1 January 2018

(cents per unit)

Change

(cents per unit)

Tariff from

1 October 2018

(cents per unit)

Average Basic Tariff

94.5

-3.5

91.0

Fuel Cost Adjustment

22.0

+5.8

27.8

Rent and Rates Special Rebate *

-1.1

0

-1.1

Average Net Tariff

115.4

+2.3

117.7

(+2.0%)

* At some point in Q4 2018 or in 2019, the Rent and Rates refund available from Government as a “R&R Special Rebate” is expected to be used up, when the Average Net Tariff will be increased by 0.9% from 117.7 cents per unit to 118.8 cents per unit.

2. Why is the tariff being adjusted?

  • We will continue to do all we can to control costs and reduce the Basic Tariff.
  • Under the new tariff package, the Average Basic Tariff will be reduced by 3.7% to 91 cents per unit of electricity.
  • However, international oil prices have increased by about 50% and coal prices by about 40% over the past year. The reduction has been more than offset by the rise in fuel costs. From 1 October 2018, the Fuel Cost Adjustment will be adjusted upwards by 5.8 cents to 27.8 cents per unit of electricity. With the offering of the Rent and Rates Special Rebate* of 1.1 cents per unit of electricity to all customers, the Average Net Tariff will be HK$1.177 per unit of electricity, equivalent to an upward adjustment of 2%.

* At some point in Q4 2018 or in 2019, the Rent and Rates refund available from Government as a “R&R Special Rebate” is expected to be used up, when the Average Net Tariff will be increased by 0.9% from 117.7 cents per unit to 118.8 cents per unit.

3. What measures has CLP taken to lessen the impact of the tariff increase?

  • We understand customers are very concerned about any tariff changes, therefore we are doing our utmost to adjust the tariff at reasonable levels.
  • Under the new tariff package, the Average Basic Tariff will be reduced by 3.7% to 91 cents per unit of electricity. However, international oil prices have increased by about 50% and coal prices by about 40% over the past year. The reduction has been more than offset by the rise in fuel costs, resulting in a slight increase of 2% in the Average Net Tariff.
  • To manage our fuel cost, we will source diversified fuels and use high energy-efficient generation facilities, coupled with innovative digitalised services.
  • We will also continue to provide the Energy Saving Rebate Scheme to assist low consumption customers and encourage energy conservation.

4. What is the arrangement for Rent & Rates Special Rebate?

  • The Rent & Rates Special Rebate is a rebate paid back to customers in respect of CLP’s claim against the Government for overcharging of our rent and rates in the past. We will follow the principle that all refunds will be returned to customers.
  • In 2012 and 2013, CLP returned to customers the refund received from the Government in respect of the Rent and Rates appeal, through the Rent and Rates Special Rebates, which totalled HK$1.6 billion.
  • For the tariff adjustment which comes into effect from October 2018, we will make a similar rebate* at 1.1 cents per unit of electricity.

* At some point in Q4 2018 or in 2019, the Rent and Rates refund available from Government as a “R&R Special Rebate” is expected to be used up, when the Average Net Tariff will be increased by 0.9% from 117.7 cents per unit to 118.8 cents per unit.

5. What will the new arrangement be for the Fuel Cost Adjustment?

  • A more frequent Fuel Cost Adjustment arrangement will be introduced from 1 October 2018. The Fuel Cost Adjustment will be adjusted automatically on a monthly basis by calculating the average fuel prices over the preceding three months compared with the projected fuel prices set out in the annual tariff review. The monthly Fuel Cost Adjustment will be published on CLP’s website and in electricity bills. The new arrangement will reflect changes in fuel price in a timelier manner and with greater transparency.

6. What is a smart meter?  What is the plan for upgrading smart meters?

  • All conventional meters of CLP’s residential and small and medium business customers will be upgraded to smart meters by the mid-2020s, to offer customers with more innovative and digitalised services as well as a range of energy saving and demand-side management solutions.

7. How does CLP help customers save energy?

  • Energy saving helps lessen the burden of electricity expenses. We provide a variety of innovative services and public education programmes to help residential and business customers save energy and reduce their electricity bills. We also encourage the community to embrace low-carbon lifestyles.
  • For residential customers:
    • The new CLP App connects customers to Eco Power 360, an energy assessment tool that helps them understand their consumption patterns and save energy.
    • The Eco Rewards scheme allows customers to enjoy exciting rewards by saving energy.
    • The Smart Energy Experience Centre in Yuen Long provides customers with a one- stop shop for smart home and business solutions.
    • Eco Building Fund to subsidise energy efficiency improvement works in communal areas of residential buildings.
  • For business customers:
    • A new Smart Enterprise solution helps business customers control and monitor their energy performance anytime, anywhere through a mobile app.
    • Other energy saving solutions including GREENPLUS Energy Billboard and Meter Online 3.0 help business customers save energy and reduce operating costs.
    • Free Energy Audits allow business customers to identify ways to save energy.
    • For SME customers, the Energy Saving Rewards programme provides the latest green services and equipment along with offers to explore new energy saving opportunities.
  • For public education on energy efficiency, we promote green lifestyle from an early stage and arrange a host of programmes targeting students from kindergarten, primary, secondary schools to tertiary institutions.

8. What new measures is CLP introducing to encourage all customers to save energy under the new Scheme of Control Agreement?

  • A new CLP Community Energy Saving Fund is being launched with around HK$70 million in 2019 to promote energy saving:
    • CLP Power Connect is a territory-wide energy efficiency and conservation campaign encouraging residential customers to live low-carbon lifestyles. Registered customers may earn rewards by saving energy. Customers can also choose the disadvantaged group they want to support and financial assistance will be offered to offset the electricity expenses of the households in need.
    • The CLP Electrical Equipment Upgrade Scheme provides subsidies to business customers, in particular small and medium-sized enterprises for the replacement or upgrading of electrical equipment to more efficient models.
    • Around HK$10 million of the fund will be used to give direct assistance to people living in subdivided units. Subsidies will be provided for the landlords of subdivided units for the rewiring work needed for the installation of individual electricity meters. Around 10,000 eligible tenants will receive financial assistance to alleviate their electricity expenses.
  • The CLP Eco Building Fund has been increased to HK$100 million a year, subsidising building owners to carry out more energy efficiency improvement works in residential, commercial and industrial buildings.
  • The number of free Energy Audits available to business customers has been quadrupled from 150 to 600 a year.

9. What has CLP done to help people in need?

  • We are committed to providing help and care to underprivileged people in our community.
  • We continue to offer the Energy Saving Rebate Scheme to help customers with low consumption levels and to encourage energy conservation.
  • We have launched a new Community Energy Saving Fund to help customers save energy and at the same time supporting the underprivileged. The fund, which will commence its operation in 2019 with around HK$70 million in its first year, will support different initiatives by offering financial assistance to around 40,000 families in need, including 10,000 households living in subdivided units. Each household will receive HK$500 to offset against their electricity expenses.
  • Since 2011, we have partnered with local non-governmental organisations to run Hotmeal Canteens which provide nutritious hot meals at a nominal cost to low-income families, the unemployed and elderly people in need. Up to now, more than 460,000 hot meals have been served up in the Sham Shui Po, Kwai Tsing and Kwun Tong districts.
  • We launched the Sharing the Festive Joy programme in 2014, inviting single elderly people and elderly couples to spend festivities such as the Tuen Ng Festival, the Mid-Autumn Festival and Senior Citizen’s Day with CLP volunteers to showcase our care for the elderly and spread messages on energy efficiency and safety. More than 3,300 senior citizens have joined the festive meals to date.

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