HK Electric to hike fuel surcharges by 20pc from June

HK Electric announced on Friday it will increase fuel surcharges by 20 percent for customers from next month, citing higher oil prices. In a statement, the power supplier serving Hong Kong Island and Lamma Island, noted its fuel clause charge (FCC) would rise by around HK$0.05 to HK$0.31 per kilowatt-hour in June. It also warned that the current level has yet to "fully capture the changes in fuel costs" due to a "deferred effect", as its charging mechanism is based on the average actual fuel costs over the previous three months. That means June's rates are decided based on the average fuel costs in February, March, and April of this year. "Together with other factors, the higher fuel costs will be progressively reflected in the FCC. A continued increase is therefore expected in the coming months," a company spokesperson said. HK Electric said it will continue to monitor the developments in the global energy market. Edited by Aaron Tam