CLP, HKE receive approval for 2024-28 development plans

Total capital expenditures for the development plans are $52.9b for CLP, and $22.0b for HKE.

Major Hong Kong-based energy firms – CLP Power Hong Kong Limited and Castle Peak Power Company Limited (through joint partnership CLP) and The Hongkong Electric Company Limited (HKE) – have received approval for their 2024-2028 development plans and 2024 electricity tariff adjustments.

The overall estimated capital expenditures in the developments are $52.9b for CLP, and $22.0b for HKE, lower than the current 2018-23 development plans, due to less investment placed in generation projects and more towards the transmission and distribution (T&D) systems.

Such development plans will aid the containment of local generation as efforts for a cleaner energy transition and imports push forth. The larger investment in T&D goes to the maintenance of energy supply for the growing demand in Hong Kong and its other development areas.

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In addition, the approved 2024 Electricity Tariff Review will serve under its 2024-28 Development Plans. Both CLP and HKE will add to the 2024 basic tariff: with an average of 3.1% for CLP and 4.4% for HKE. Due to the decrease of global fuel prices, the net tariff for both companies will be reduced in January 2024 by 7.4% for CLP, and 16.0% for HKE.

As a result, both companies have estimated that the annual increase in basic tariff will hit 2% to 3% in 2025 to 2028, with consideration of inflation. Meanwhile, the basic tariff under the 2024-28 development plan will hit 2.2% for CLP and 3.1% for HKE.