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HKELECTRIC-SS: Fuel Clause Charge Expected to Keep Rising; Company Only Recovers Costs Without Profit
2026-06-29 08:09:16 HKELECTRIC-SS (02638.HK) announced that the Fuel Clause Charge (FCC) for July will be 41.9 cents per unit of electricity, representing an increase of 33.9% from June. The adjustment reflects the rise in international fuel prices. Francis Cheng, Managing Director of The Hongkong Electric Company, remarked that the company relies on importing natural gas from Qatar in the Middle East, and if natural gas exports from the region fail to resume, there remains a possibility of further increases in the coming months. He acknowledged that the higher natural gas costs are being passed on to customers, but stressed that the company is only recovering actual costs and does not profit from the adjustment. Cheng also noted that the current tariff mechanism has a lag effect, and further price increases may occur in the next few months. Regarding the establishment of strategic natural gas reserves in Hong Kong, he said discussions had been held with the government, but significant operational challenges remain, including limited land resources and substantial investment requirements. Given the relatively small customer base, such measures would ultimately result in a proliferation in electricity tariffs. ~ AASTOCKS Financial News Website: www.aastocks.com | |