Towngas Announces Tariff Increase, Citing Rising Costs and Investment Needs
Quick Look
- Hong Kong and China Gas Company (Towngas) will increase tariffs by 4.4%, affecting commercial and industrial customers with an extra HK$320/month and residential customers with HK$10/month.
- The company cites rising operating and labor costs, and significant investment in new developments.
AI-generated summary
Why It Matters
Towngas is increasing its basic tariff by 4.4% and its monthly maintenance charge. This decision is driven by increased operating expenses and labor costs over the past two years, as well as the need for significant investment in new developments.
The Hong Kong and China Gas Company (Towngas) said on Thursday that the tariff increase would result in about half of its commercial and industrial customers paying no more than HK$320 extra a month. It added that 65 per cent of residential customers would pay at most HK$10 more per month.
Towngas attributed the increase to rising operating expenses over the past two years, along with higher labour costs across the gas industry.
The company also said it would need to invest in gas supply for newly developed areas such as the Northern Metropolis megadevelopment. It said total capital expenditure would reach HK$13.1 billion for 2026 and the subsequent five years.
The 4.4 per cent increase in the basic tariff is equivalent to 1.25 HK cents per megajoule. The fixed monthly maintenance charge will rise by HK$1 to HK$11.
The basic tariff and monthly maintenance charge would not be adjusted further over the next two years, the company said.
Open Questions
- Will further tariff increases be needed in the future?
- What is the breakdown of operating expense increases?
