Friends of the Earth (HK) Comment on the Electricity Tariff Adjustment
The government approved of the electricity
tariff increase yesterday, by 7% for
HK Electric and 5.8% for CLP, due to rising international fuel prices. Friends of the Earth (HK) has the recommendations in response to
the tariff adjustment and on the long-term
development of the electricity market:
1.Rising electricity bills will
burden grassroots citizens. The government should subsidise low energy users based on the polluter pays principle.
On the other hand, a progressive
approach should be applied to both residential and non-residential intensive energy users to promote energy
conservation through economic
2.On demand management, the
government must speed up the installation ofsmart meters in Hong Kong to allow users to better understand their own energy consumption patterns and plan
energy use. The government should explore the use of time-of-use tariffsto smoothen energyuse during peak hours, savingenergy and reducing costs.
3.Buildings account for 90% of electricity consumption in Hong Kong. The government
must tighten the Building Energy Code and assist building owners in improving energy efficiency, such as in electrical installation, air conditioning, lighting, lifts and escalators, and more, to cut electricity use and reducecarbon emission.
4.With high international fuel prices
and the government’s move to replace coal with
natural gas, electricity bills will continue to rise in the future. IRENA’s "Renewable Power Generation Costs in 2020”
report published in June found the
cost of over 60% of new renewable power generation is cheaper than the cheapestnew fossil fuel options. The government must accelerate local renewable energydevelopment, including offshorewind and solar energy,and strengthen regionalcooperation at the same time to increasethe supply of low-carbon energy in Hong Kong on a large scale.