Hk Electric Investments & Hk Electric Investments Ltd. · HKEX:2638
Hk Electric Investments & Hk Electric Investments — HK Electric Investments — Corporate Update (December 2017)
10 slides from Hk Electric Investments & Hk Electric Investments's corporate update, Dec 12, 2017
Slide 1: Tariff Review 2018
12 Dec 2017 Tariff Review 2018 Presentation to LegCo Panel on Economic Development
Slide 2: 2018 Basic Tariff
2018 Basic Tariff Year 2017 2018 Adjustment Components (¢/unit) (¢/unit) (¢/unit) Basic Tariff 108.9 109.1 + 0.2 Special Rent & Rates Rebate - 4.0 - 4.0 --- Net Basic Tariff 104.9 105.1 + 0.2 ● Basic Tariff to increase by 0.2¢ per unit ● Basic Tariff increase mainly due to rise in operating costs, d
Slide 3: 2018 Fuel Clause Charge (FCC)
2018 Fuel Clause Charge (FCC) Year 2017 2018 Adjustment Components (¢/unit) (¢/unit) (¢/unit) Fuel Clause Charge (FCC) 23.4 23.4 --- Special Fuel Rebate - 17.9 - 16.0 + 1.9 Net FCC 5.5 7.4 + 1.9 ● Fuel expenses expected to increase due to rising fuel prices, but FCC in 2018 to remain at the same lev
Slide 4: 2018 Net Tariff
2018 Net Tariff Year 2017 2018 Adjustment HK¢ per unit (¢/unit) (¢/unit) (¢/unit) Net Basic Tariff 104.9 105.1 + 0.2 Net FCC 5.5 7.4 + 1.9 + 2.1 Net Tariff 110.4 112.5 [+ 1.9%] ● 2018 Net Tariff will be 112.5¢ per unit, 2.1¢ per unit higher than 2017 ● Net Tariff rebound mainly due to reduced Specia
Slide 5: 2018 Net Tariff Lower than 2013
2018 Net Tariff Lower than 2013 ● Honoured pledge to freeze tariff for 5 years – 2018 Net Tariff lower than 2013 by 16.6% Year 2013 2014 2015 2016 2017 2018 ¢/unit Net Tariff 134.9 134.9 134.9 133.4 110.4 112.5 Compared to 0% 0% -1.1% -18.2% -16.6% 2013 4
Slide 6: Tariff Lower than International Cities
Tariff Lower than International Cities Residential Tariff ($/unit) Remarks: Comparison based on monthly residential customer consumption of 275 units ; overseas tariffs and exchange rates are as at Nov 2017 Sources: 1. Shanghai: Shanghai Municipal Electric Power Company 4. Singapore: SP Services Ltd
Slide 7: Quality Service
Quality Service ● Concessionary Tariff for those in need – Beneficiaries include elderly, disabled, single-parent families and unemployed – 60% discount for first 200 units each month – Deposit waived – No minimum charge – Also eligible for “Super Saver Discount” for any month with consumption ≤ 100
Slide 8: Rising Fuel Prices
Rising Fuel Prices Oil Price – Coal Price – Brent Crude Oil Spot Newcastle Export Index (Australia) Between Jan 2016 and Nov 2017, Between Jan 2016 and Nov 2017, oil price has increased by 101% coal price has increased by 100% ● Fuel prices doubled in past 2 years and continue on upward trend, antic
Slide 9: Closing Remarks
Closing Remarks ● Despite continuing CPI increases and volatile fuel prices, we have honoured the 5-year tariff freeze pledge through prudent operations and tariff is lower than most international cities ● Between 2013 and 2018, Net Tariff reduced by 16.6% whilst aggregated CPI over the same period
Slide 10: Thank You
Thank You
HK Electric Investments — Corporate Update (December 2017) on 6ix