FUTURE LOCAL POWER COST MAY TRIPLE: CLP

CLP Power Hong Kong Ltd ViceChairman Betty Yuen warned that the future energy cost to generate electricity in the city may jump three times, but declined to comment on tariff increases in the coming year.

“We are preparing to allow the import of PetroChina’s second West to-East Pipeline natural gas to feed the Black Point Power Station because the depletion of the Yacheng gas field will soon take place,” Yuen said.

“However, the natural gas supplied by PetroChina’s second Westto-East Pipeline in the future would be three times more expensive than the gas supplied by the Yacheng gas field, meaning the future energy cost to generate local electricity will rise drastically.”

“The group will do everything it can to prevent an energy cost surge that will transmit into higher electricity bills. For example, we have urged the Yacheng gas station to produce more environmental-friendly natural gas or purchase better quality coal to generate more electricity. We also asked local customers to reduce their current electricity consumption so that it can hinder the tariff rise to some extent,” Yuen reckoned. “In addition to an energy cost hike, the group will also consider other factors such as sales volume of local electricity and operating expenses. The group will consider all these factors with the government to decide whether there will be tariff increases in the coming year,” Yuen noted.