Hk Electric Investments & Hk Electric Investments Ltd. · HKEX:2638
Hk Electric Investments & Hk Electric Investments — HK Electric Investments — Investor Presentation (December 2019)
13 slides from Hk Electric Investments & Hk Electric Investments's investor presentation, Dec 10, 2019
Slide 1: Tariff Review 2020
10 December 2019 Tariff Review 2020 Presentation to LegCo Panel on Economic Development
Slide 2: Tariff Review 2020 Highlights
Tariff Review 2020 Highlights ● In 2020, HK Electric will substantially increase natural gas generation to combat climate change and improve air quality ● Net Tariff will be 126.4 ¢/unit, which is – lower than 130.8 ¢/unit in the Development Plan, and – comparable to the tariff 10 years ago, i.e. 12
Slide 3: The Government's Subsidy Schemes
The Government’s Subsidy Schemes Residential Customers Non-residential Customers New Electricity Charges Subsidy: To counter the Electricity Charges Relief Scheme: To alleviate increasingly challenging external and local economic the impact of tariff increase on households due to 1 1 environment, th
Slide 4: HK Electric's Relief Measures
HK Electric’s Relief Measures Non-residential Customers (Primarily SMEs) Specially for SME Caterers Grace period: Around 70,000 non-residential Electricity payment deferral: Eligible customers 1 customers will have the tariff increase for 2020 1 are invited to apply for 2-month payment deferral of w
Slide 5: Tariff Adjustment
Tariff Adjustment Net Tariff 2019 2020 Adjustment Reason (¢/unit) (¢/unit) (¢/unit) Basic Tariff 101.3 102.0 + 0.7 • Increase in natural gas generation leading to higher capital expenditure Fuel Clause Charge 23.4 24.8 + 1.4 • Increase in fuel cost + 2.1 Net Tariff before Special Rebates 124.7 126.8
Slide 6: Comparison of 2019 and 2020 Tariffs
Comparison of 2019 and 2020 Tariffs (¢/kWh) 2019 2020 120.1 ¢ 126.4 ¢ Net Tariff Net Tariff - 0.4 ¢ 125 Special Rent and + 1.4 ¢ Rates Rebates + 2.3 ¢ + 0.7 ¢ Increase in Fuel Clause Exclude 2019 Special Charge + 6.3 ¢ Increase in Basic Tariff Rent and Rates Rebate （+ 5.2%） + 2.3 ¢ Exclude 2019 Spec
Slide 7: Residential Tariff
Residential Tariff ● Illustration for early 2020: Tariff Charge before Government's Tariff Charge after Monthly Relief Measures Relief Measures Relief Measures Cumulative Electricity (HK$) (HK$) (HK$) Customers Consumption (%) (kWh) 2019 2020 2019 2020 2019 2020 100 > 10% 74.6 80.6 24.6 (No charge)
Slide 8: Non-residential Tariff
Non-residential Tariff ● Illustration for early 2020: Tariff Charge before Tariff Charge after Relief Measures Relief Measures (HK$) Relief Measures (HK$) (HK$) Monthly Cumulative Electricity Customers 2020 Consumption (%) (kWh) 2019 2020 2019 HK Electric’s Government’s 2019 2020 Grace Electricity P
Slide 9: Residential Tariff Lower Than Other Cities
Residential Tariff Lower Than Other Cities 3 Residential Tariff (HK$/unit) 242% 222% 229% 218% 2 157% 147% 100% 103% 1 81% 2020 Tariff 0- Shenzhen* HK Electric Seoul Macau Singapore London Tokyo Sydney New York Remarks: (1) Comparison based on monthly residential customer consumption of 275 units (3
Slide 10: HK Electric's Emission Reduction Efforts
HK Electric’s Emission Reduction Efforts ● Increase in gas generation helps combat climate change and improve air quality 2005 2020 Year 2018 (Base Year) Projections Proportion of Gas Generation 0% 32% 50% Reduction in Major Emissions Carbon Dioxide (CO2) ↓ 16% ↓ 27% Sulphur Dioxide (SO2) ↓ 91% ↓ 94
Slide 11: Promoting Community Energy Saving & Renewable Energy Development
Promoting Community Energy Saving & Renewable Energy Development Feed-in-Tariff RE Certificate Smart Power Services & Associated Programmes Total Applications Certificates sold Smart Power Energy Audit 127 136 Smart Power Building Fund Total Capacity RE sold Smart Power Care Fund 2,584 kW over
Slide 12: Conclusion
Conclusion ● HK Electric will substantially increase natural gas generation in 2020. Tariff adjustment is required for the following reasons: – Increase in capital expenditure, – Expected increase in fuel cost of $500 million, and – Substantial reduction of special rebates by 4.2 ¢/unit ● At 126.4 ¢
Slide 13: Thank you
Thank you
HK Electric Investments — Investor Presentation (December 2019) on 6ix