Hong Kong's power companies to make tariff estimates every 5 years

The most recent 5% tariff reduction is subject to many variables.

The 5% tariff reduction set out in the new Scheme of Control Agreements reached between the Government and the city's two power companies is subject to "various variables."

Secretary for the Environment KS Wong made the statement to the media, saying the companies will make tariff estimates every five years to give the public clearer information.

The new agreements will lower the permitted rate of return for the companies from 9.99% to 8%.

He said the 5% estimate is to help the public better understand the implications of the reduced rate of return.

“Based on the change from 9.99% to 8% in terms of the permitted rate of return, the translation into tariff reduction could be more than 5%.”