CLP to raise fuel cost adjustment next month, first increase in more than a year

CLP Power, Hong Kong’s largest electricity supplier, will raise its fuel cost adjustment (FCA) next month – the first increase in more than a year…

CLP Power, Hong Kong’s largest electricity supplier, will raise its fuel cost adjustment (FCA) next month – the first increase in more than a year – citing changes in actual fuel prices.

Starting from April 1, the FCA will rise from 39.2 HK cents to 39.8 HK cents per kilowatt-hour, an increase of 0.6 HK cents, according to the power supplier’s website on Wednesday. CLP serves Kowloon, the New Territories and Lantau Island.

With the basic tariff included, the net electricity charge for April will be 141 HK cents (18 US cents) per kWh.

CLP said the adjustment reflected changes in actual fuel prices compared with earlier forecasts, and that the April increase was caused mainly by higher natural gas prices.

Natural gas prices have been volatile following the start of the US-Israel war against Iran on February 28, with threats to the Strait of Hormuz causing European and Asian benchmarks to more than double.

This is the first upward revision since January last year. CLP explained that the fuel cost adjustment was reviewed monthly to reflect fluctuations in the prices of natural gas, coal, and oil.

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