21 Jun 2024
Towngas Tariff Adjustment
(21 June 2024) The Hong Kong and China Gas Company Limited (Towngas) has informed the Environment and Ecology Bureau that it plans to raise its basic tariff from 1 August 2024. The Panel on Environmental Affairs of the Legislative Council has circulated the related paper to its members today.
Towngas proposes to raise its basic tariff by HK1.3 cents per MJ from 1 August 2024. The 4.8% increase is equivalent to a 4.2% increase in the average effective gas tariff (including basic tariff and fuel cost variation charge) in 2023. Following a 26-year freeze, the fixed monthly maintenance charge is to be increased by HK$0.5, bringing it to HK$10. Concurrently, Towngas has announced that the basic tariff and the monthly maintenance charge will not be subject to further adjustments for the next two years.
After the tariff adjustment, it is estimated that around 70% of Towngas’ residential customers will pay no more than HK$10 extra for their gas consumption each month, and about 50% of its commercial and industrial customers will pay less than HK$330 extra for their gas consumption each month.
Towngas has always been exceedingly prudent in regard to tariff adjustments. Over the past two years, the operational expenses have been escalating, while a shortage of skilled technicians in the gas industry also resulted in heightened labour costs. There is also the necessity for substantial capital investment in the forthcoming years to maintain safe and reliable services, as well as to supply town gas to newly-developed areas. It is anticipated that the aggregate capital investment for 2024 and the subsequent five years will amount to HK$9.8 billion. Having thoroughly considered the affordability for customers, a moderate tariff adjustment has been proposed.
Towngas will keep offering various concession schemes to around 43,000 beneficiaries, including eligible elderly persons, people with disabilities, single-parent families and low-income families. These beneficiaries will continue to enjoy a 50% discount for the first 500MJ of town gas consumed each month, and the monthly maintenance charges and spare parts costs will remain waived. Households covered by the concession schemes will not be affected by the tariff adjustment. The basic tariff they are obligated to pay will be maintained at the level from 16 years ago, i.e. that of 2008.
Moreover, Towngas remains committed to offering various support to customers, including donating 10,000 sets of Smart Controllers and Smart Meters to families in need, as well as providing HK$50 million in sponsorship to small and medium enterprises to upgrade their energy-efficient and green equipment.
Since the introduction of natural gas as one of the feedstocks for gas production in October 2006, Towngas has saved customers around HK$22 billion in fuel costs to date. These savings are returned to customers through the fuel cost adjustment mechanism. Despite international crude oil prices being on the high side, the average effective gas tariff in 2023 is only 10.7% higher than that of September 2006 (prior to the adoption of natural gas), while the cumulative inflation rate during the same period is approximately 57%.
Towngas will maintain the basic tariff and the monthly maintenance charge for the upcoming two years. As has been its practice, Towngas will persist in investing in infrastructure, environmental protection, safety services, and providing support for communities in need. In doing so, the Company actively fulfils its corporate social responsibility, delivering high-quality and exceptional services to its customers.
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For media enquiries, please contact:
The Hong Kong and China Gas Company Limited
Mr Addie Lam
Assistant General Manager –
Group Corporate Affairs
Tel: 2963 2578 / 6702 6449
Email:
addie.lam@towngas.com |
Ms Kara Kwong
Senior Corporate Affairs Officer
Tel: 2963 3497 / 6698 3357
Email:
kara.kwong@towngas.com |