Our home base Hong Kong is seen by some as a mature market, but we still see an increase in demand for electricity and the infrastructure necessary to deliver it. This is driven by a growing population and customer base, as well as major infrastructure developments such as the expanding MTR network, the high-speed rail link and the Hong Kong-Zhuhai-Macau Bridge.
CLP Power Hong Kong is the sole electricity provider for Kowloon, the New Territories, and most of the outlying islands, serving 2.56 million customer accounts or about 80% of Hong Kong’s population.
Our total electricity sales for 2017 were broadly the same as in 2016 at 34,505GWh, where 33,164GWh came from sales to our Hong Kong customers and 1,341GWh from sales to the Mainland.
Competition for customers in Australia remained intense in 2017 with discounts and rebates dominating the acquisition strategies of retailers. Despite this, EnergyAustralia maintained a stable number of customer accounts in 2017.
EnergyAustralia retails electricity and gas to customers in New South Wales, Victoria, South Australia, the Australian Capital Territory and Queensland (electricity only). It is amongst the 30 or so retailers active in the key markets of New South Wales and Victoria, with over 2.62 million customer accounts.
Read about how we engage with and support our customers
Ensuring reasonable tariff in Hong Kong
We attach great importance to customers’ concerns about the impact of tariffs and have taken a prudent approach to cost management in order to keep our tariff at a reasonable level.
CLP’s electricity tariff consists of two parts:
- Basic Tariff – covers all the costs required to provide electricity, including a standard cost of fuels and a return as determined by the Scheme of Control (SoC); and
- Fuel Cost Adjustment – covers the charges or rebates for the difference between the actual cost of fuels and the standard cost of fuels recovered through the Basic Tariff.
The Average Net Tariff for 2018 has been adjusted to HK$1.154 per unit of electricity on the 1st January 2018. The Average Basic Tariff was increased by 2.3 cents per unit, while the Fuel Cost Adjustment was increased by 1 cent. A Rent and Rates Special Rebate of 1.1 cents per unit is being offered to all customers.
Adjustment in our tariff in recent years has mainly been due to the fluctuations of fuel costs. Globally, fuel prices have been highly volatile and since natural gas costs more than other fuels, to meet government’s target of increasing gas to around 50% of the fuel mix in 2020, it must be expected that this will lead to further challenges in tariff management. We have taken actions to minimise the impact of significant fuel cost fluctuations and to maintain tariff at a reasonable level. These actions include enhancing generation efficiency, making the most of existing gas reserves, and cost control. We are proposing to build an Offshore Liquefied Natural Gas Terminal in Hong Kong waters to further enhance Hong Kong’s competitiveness in sourcing reliable supplies of natural gas. It is in the final stages of an Environmental Impact Assessment and, subject to the necessary approvals from government, it is expected to be completed in 2020.
Find out more about the Scheme of Control
Customer health and safety
Electricity needs to be provided safely. We take this responsibility seriously and place the highest priority on both customer and employee safety.
Working near electricity supply lines can impose public health and safety concerns. We conduct regular construction site inspections and provide cable plans and safety talks to road work contractors to enhance safety awareness. Through site inspections and safety talks, measures for working near electricity supply lines are communicated to site management personnel.
Electromagnetic fields (EMF) arising from the power system can be another public health concern. Our power supply equipment fully complies with the guidelines issued by the International Commission on Non-Ionizing Radiation Protection (ICNIRP). Regular EMF measurements on our power supply equipment are carried out jointly with the Electrical and Mechanical Services Department. The measured EMF levels are well below the guideline limits.
Managing our effects on community
All our power plants have the potential to impact local communities, in both positive and negative ways. We try to mitigate any concerns through the following measures:
- Communicating with local governments to explain the nature of the project before construction starts and obtain their help in liaising with the local community;
- Following all applicable laws and regulations regarding land acquisition and environmental impact;
- Providing employment opportunities where possible;
- Contributing to local community services such as schools or hospitals; and
- Offering to receive local people and school children at the plant and explain what we do.
We have a wide range of open public engagement channels through which we can receive any concerns, interest or feedback at any time during the year. General complaints about the company are typically handled by our Public Affairs team who work with the relevant colleagues to resolve the issue at hand.