CLP to Raise Hong Kong Electricity Tariffs by 5.9% in 2013

CLP Holdings Ltd. (2), Hong Kong’s biggest electricity supplier, plans to raise net charges by 5.9 percent in 2013, according to a company statement.

CLP and Hongkong Electric Co., a unit of Power Assets Holdings Ltd. (6) and the city’s other electricity supplier, disclosed plans to increase energy tariffs at a meeting of the Legislative Council yesterday. Hongkong Electric plans to boost charges by 2.9 percent, the company told lawmakers.

“We are conscious of the need to keep the 2013 adjustment to a reasonable level,” CLP Managing Director Richard Lancaster said in an e-mailed statement. CLP will introduce a rebate to encourage conservation and help customers save energy, he said.

Higher fuel costs prompted the tariff increase, according to the statement. About 35 percent of domestic customers and 44 percent of small businesses won’t have to pay more because of the new rebate. CLP estimated 2012 capital spending at HK$7.88 billion ($1.02 billion), according to a separate filing to Hong Kong’s stock exchange yesterday.

CLP cut its proposed electricity tariff increase to 4.9 percent from 9.2 percent last year after criticism from government officials including former Hong Kong Chief Executive Donald Tsang.

CLP shares fell 0.2 percent to HK$67.30 as of 10:19 a.m. in Hong Kong, while the city’s benchmark Hang Seng Index gained 0.7 percent. Power Assets fell 0.6 percent to HK$67.10.

To contact the reporters on this story: Aibing Guo in Hong Kong at aguo10@bloomberg.net; Rachel Evans in Hong Kong at revans43@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

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