Power giants line up subsidy move as fuel charges jump

Hong Kong's two electricity companies announced on Friday special subsidies for customers who limit their power usage between August and October, to help alleviate financial pressure brought about by increases in fuel charges. CLP said it will offer a subsidy of HK$0.80 per kilowatt-hour to users who consume 900 kilowatt-hours or fewer every 60 days. The company has increased fuel costs for four consecutive months, with prices to hit 43.5 Hong Kong cents per kilowatt-hour in July. About half of its residential users are expected to enjoy the subsidy. Hongkong Electric's special subsidy over the same period will go towards residential customers whose monthly power use amounts to 450 kilowatt-hours or fewer. The power supplier for Hong Kong Island and Lamma said the subsidy for such users will be HK$0.80 per kilowatt-hour. The announcement came a day after the power giant said it will further raise fuel surcharges in July by about 34 percent to 41.9 Hong Kong cents per unit of electricity, which followed its move to raise its fuel-clause charge, citing higher oil prices, by 5.3 cents to 31.3 cents for June. "This has brought additional financial pressure on residents, and through rolling out a special subsidy, we hope to alleviate the burden of energy expenses on the public," a company spokesperson said on Friday. Hongkong Electric added that half of its residential customers is expected to benefit from the subsidy move. Edited by Edmond Fong