2015 tariff - legislative council of hong · pdf file2015 tariff presentation to ... consumer...
TRANSCRIPT
2015 Tariff
Presentation to LegCo Panel on Economic Development
16 December 2014
LC Paper No. CB(4)242/14-15(06)
2
2015 Tariff : Key Information
• With CLP’s Energy Saving Rebate, 36% residential
customers and 44% small business customers will see no
tariff increase for three consecutive years, or even a
slight decrease
• Due to increased fuel costs, Average Total Tariff
increases by 3.1%, below inflation rate
3
Extensive Efforts to Alleviate Tariff Pressure • Strenuous effort in optimising fuel usage and expenses
1. Maximize the use of cheaper gas from Yacheng gas field
2. Procure more low emission coal
3. Temporary import of additional nuclear energy from Daya Bay
4. Enhance operation performance of generation plants and emission reduction equipment
These measures help reduce the usage of the more expensive gas supplies from the second West-East Gas Pipeline (WEPII)
• Prudent cost management and recent downward trends in fuel prices,
together with the use of Fuel Clause Account, help mitigate overall
tariff impact
• CLP will continue to work diligently in containing tariff increase to a
minimum level
4
2015 Tariff Summary
Tariff Component (¢/kWh) 2014 Tariff Change 2015 Tariff
Average Basic Tariff 88.4 -1.2 87.2
Fuel Cost Adjustment 22.4 +4.6 27.0
Average Total Tariff 110.8 +3.4 114.2 (+3.1%)
With CLP’s Energy Saving Rebate, 36% residential customers and
44% small business customers will see no tariff increase
for three consecutive years, or even a slight decrease
5
Reasonable Tariff with World-class Reliability
0
1
2
3
CLP Power Singapore London Sydney New York
Remarks:
Comparison based on average monthly domestic consumption of 275kWh
Tariff and exchange rate at Nov 2014
HK$/kWh
Low Tariff High Reliability
CLP 2015 tariff adjustment Remarks: 2011-2013 average
0.42.3
1619
30
0.0
10.0
20.0
30.0
40.0
50.0
0.5 CLP Power
Unplanned customer
minutes lost per year
Sydney
(CBD)
New York London Singapore
More Reliable Less Reliable
6
Reasonable Electricity Tariff in Hong Kong
Source : “2009/10 Household Expenditure Survey and the Rebasing of the
Consumer Price Indices”, HKSAR Government
Food
27.1%
Gas and water
1.3%
Clothing and
Footwear 4.0%Durable goods
4.1%
Transport 8.3%
Housing
32.8%
Alcoholic drinks
& tabacco 0.6%
Miscellaneous
20.3%
Household Expenditure Survey
Electricity 1.6%
7
Basic Tariff still Below 1998 Level Rising Fuel Cost – Key Driver for Tariff Increase
-20
0
20
40
60
80
100
1998 2000 2002 2004 2006 2008 2010 2012 2014
HK¢/kWh
Average Net Tariff
Basic Tariff
Fuel Cost Adjustment
87.2
89.1
8
2014 2015
Significantly Tighter Emissions Caps, Fuel Costs Increase by 50%
Total fuel cost increased by 50%
2015 emissions caps are set with reference to the gas generation capacity
in HK, ~80% are under CLP
0
5
10
15
20
25
30
35
40
45
2014 2015
To
tal E
mis
sio
ns
(kilo
ton
nes
)
RSP
SO2
NOx
-35%
-65%-36%
Emission Caps
9
With Higher Use of Natural Gas, Total Fuel Costs in 2015 to Rise to Approximately HK$15.5b
0
5
10
15
20
2003 2006 2009 2012 2015e
HK$ billion Fuel Costs
2015 emissions cap kicks in
10
Highly Volatile Fuel Prices
0
50
100
150
200
250
300
350
400
450
500
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14
HK Local Inflation CPI(A) Coal price (globalCOAL index) Japanese LNG Import Price
11
Extensive Efforts to Alleviate Tariff Pressure • 2015 total tariff increase is below inflation rate
• Strenuous effort in optimising fuel usage and expenses
1. Maximize the use of cheaper gas from Yacheng gas field
2. Procure more low emission coal
3. Temporary import of additional nuclear energy from Daya Bay
4. Enhance operation performance of generation plants and emission reduction equipment
These measures help reduce the usage of the more expensive gas supplies from the second West-East Gas Pipeline (WEPII)
• Prudent cost management and recent downward trends in fuel prices,
together with the use of Fuel Clause Account, help mitigate overall
tariff impact
• CLP will continue to work diligently in containing tariff increase to a
minimum level
12
Fuel Clause Account (FCA) Helps Alleviate Tariff Increase
2.88 0.55
15.45
2.33
13.12
0
2
4
6
8
10
12
14
16
2014 year-end 2015 year-end
HK
$ b
illi
on
Total fuel costs in
2015 Fuel cost recovered from tariff
FCA drawdown reduces tariff requirement
2014 year-end estimate
Fuel Cost Adjustment increase
2015 year-end estimate
13
Energy Saving Tools and Measures for Customers Energy Billboard Home Energy Report
CLP Eco Building Fund
14
Public Education on Environmental Protection
Green Elites Portal cum Award Scheme Green Elites Campus Accreditation Pilot Programme
15
Committed to Serving the Community
Hotmeal Canteen
CLP Subsidy Programme for Energy Efficient Electrical Appliances
LED Light Bulbs Replacement
Community Care Subsidy Scheme
16
Commitment to Serving Hong Kong
• CLP has been serving Hong Kong for 113 years. With our
power expertise, we fulfill our community commitment
by providing reliable electricity supply and meeting the
community’s expectation of a cleaner environment
• We understand the concern of the community and we
endeavour to work with and support the community
2015 Tariff
Presentation to LegCo Panel on Economic Development
16 December 2014