Greenpeace demands a reform in the electricity market

Greenpeace demands a reform in the electricity market

Press release - 2014-12-17
Hong Kong Dec 17, 2014 Greenpeace reveals today the on-going unfairness of electricity tariffs for commercial and residential clients, as CLP adopts double standards in the tariff structure in favor of large commercial users. Greenpeace investigates the tariff rates from 2004-2014, where household users with large electricity consumption suffer from tariff hikes by 60% in the past 11 years; while the commercial large power users enjoy a cutback. Under the current《Scheme of Control Agreement》, the government has no bargaining power in monitoring and adjusting the electricity tariff, with the two power companies able to impose unfair and unreasonable tariff on customers. Greenpeace demands the two electric companies to review their mechanisms for compiling the tariff, and urge the government to take the chance in 2018 to reform the electricity market.

Greenpeace Campaigner, Argo Yeung criticizes CLP to impose double standard in setting the electricity tariff, “ While the residential households are following a progressive rate, they pay a higher per unit price electricity when they use more energy; but in the commercial sector, the more electricity the top business holders consume the less they pay and the government cannot do anything about it under the current Scheme of Control Agreement.”

Greenpeace reviewed the electricity tariff of all consumer types from 2004-2014, and found out among their large commercial users, the per unit price is $0.431 in 2014, which is 0.69% cheaper than the price in 2004. While for residential households, the categories for cumulative tariff have increased from four to seven; while for the highest electricity users, the tariff charge has increased by 60% compared to a decade ago. 

In addition, within CLP’s three types of commercial customers, for average usage customers the electricity tariff ranges from $0.973 to $0.982, which is double the tariff of the large power customers. Although under the current tariff, CLP requests their large power customers to pay additional charges, these top users still enjoy at least 20-40% discount in their tariff than the average usage customers. Argo Yeung added, “ Under this tariff structure, gigantic shopping malls like Harbor City, enjoy 10,000,000 HKD discount, which is extremely unfair to the majority of small business holders.” Greenpeace  demands that a progressive tariff structure should be adopted for all commercial holders. 

Greenpeace demands the government should suggest tighten controls on the composition and mechanism of electricity tariff during the 2015 consultation on the regulation of Hong Kong electricity market, which will kick off next year. At the same time, Greenpeace requests both by CLP and HKE should take into account the externalities of the business holders, especially for the larger power consumers, for compiling a long term and effective tariff adjustment.

Greenpeace suggests that the Government should  take the chance to introduce changes to the electricity regulatory framework in 2018, to regain control of setting tariffs and set higher targets for energy conservation and impose the "polluter pays" principle. Greenpeace also demands the two power companies to drop being double standard in 2015’s tariff structure.

Media Contact: 
Argo Yeung Campaigner
Tel: 2854 8337 Email:

Sandy Zeng Communications Officer
Tel: 2854 8382 Email: 

CLP’s electricity tariff for all consumer types (2004 and 2014)

Residential Tariff

Total Consumption Block (Bimonthly)

<400 kWh

401-1000 kWh

1001-1800 kWh

1800-2600 kWh

2601-3400 kWh

3401-4200 kWh

>4200 kWh

2004 tariff ($)

0.859

0.929

0.993

1.079

1.079

1.079

1.079

2014 tariff ($)

0.817

0.945

1.098

1.396

1.618

1.718

1.73

2004-2014 different

-4.89%

1.72%

10.57%

29.38%

49.95%

59.22%

60.33%

 

Business Tariff

 

Non-Residential Tariff

Bulk Tariff

Large Power Tariff

Energy Charge
(Monthly)
 

Highest  rate
(<5000 kWh)

Lowest rate
(>5000 kWh)

Highest  rate

Lowest rate

Highest  rate

Lowest rate

2004 tariff ($)

0.968

0.958

0.694

0.619

0.529

0.434

2014 tariff ($)

0.982

0.973

0.7

0.623

0.529

0.431

2004-2014 Change

1.45%

1.57%

0.86%

0.65%

0.00%

-0.69%

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