Hong Kong electricity price rises will be lower than inflation, environment chief says, reveals talks under way to build nuclear power plant in mainland China

Hong Kong's Minister for Environment and Ecology, Tse Chin-wan, has announced that the city's electricity prices will not rise as much as inflation in the coming years. This is due to the government's decision to reduce the investment expenditure of the city’s two electricity providers for the next five years, which will help to curb price hikes.

In addition to this, Tse Chin-wan revealed that authorities are in discussions to construct a nuclear power plant in mainland China. This initiative is part of the city's efforts to meet its carbon reduction goals. Currently, half of Hong Kong’s energy is generated from natural gas, while a quarter is produced from coal and another quarter is imported from the Daya Bay Nuclear Power Plant in Guangdong province. The government's aim is to increase the city's nuclear power supply to 70% by 2035, which will significantly reduce carbon emissions.

The two power companies, CLP Power and HK Electric, announced last month that they would reduce their fuel charges but increase basic tariffs by about 2 per cent. However, Tse Chin-wan assured that the government has more control over their basic tariff increments in the future, and he is confident that the increase will be lower than inflation rates. He also disclosed that the government is negotiating with mainland authorities to establish a mutually beneficial agreement in which Hong Kong would build a nuclear plant across the border to supply the city, or even the mainland, with energy by 2035.