HK Electric Investments and HK Electric Investments Announces 2.2% Tariff Reduction for 2026

Press Release

18 November 2025

HK Electric announced today that the Average Net Tariff for January 2026 will be

163.3 cents per unit of electricity, representing a reduction of 3.7 cents, or a 2.2% decrease, compared to that in January 2025 (see Table 1).

The Net Tariff is composed of the Basic Tariff and the Fuel Clause Charge. Taking into account upgrades and reinforcement works for electricity infrastructure, and increase in operating expenses, the Basic Tariff for next year will be adjusted to 127.9 cents per unit of electricity, an increase of 5 cents compared to that of 2025.

On the other hand, the Fuel Clause Charge for January 2026 will decrease by

8.7 cents from 44.1 cents in January this year to 35.4 cents per unit of electricity, in light of market conditions.

Taking the case of a household consuming 275 units of electricity a month as an example, the total electricity charge for January 2026 will be $352.1. This represents a decrease of $10.1 from $362.2 as in January 2025.

To ensure supply reliability, HK Electric needs to make capital investments to upgrade its generation, transmission, distribution, customer services and IT systems, strengthening resilience and meeting future challenges.

HK Electric Managing Director Mr. Francis C.Y. Cheng said, "HK Electric has been committed to providing Hong Kong with a safe, reliable, and clean electricity supply. Through prudent planning, we continuously replace assets that have reached or exceeded their design or useful lives, in accordance with their depreciation cycles or actual condition - such as aged generating units, transmission and distribution facilities, to ensure a stable and reliable power supply while avoiding unnecessary capital investment. In light of the increasingly severe cyberattack threats, IT systems have to be enhanced to strengthen their resilience."

HK Electric also fully supports the Government's environmental policies by building new gas-fired generating units to advance the fuel transition from coal to

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gas and improve emissions. Construction of the new L13 gas-fired generating unit is progressing well and is expected to be commissioned as planned in 2029.

"These capital investments inevitably put pressure on tariffs. While the Basic Tariff will need to be adjusted due to these factors and rising operating costs, the relatively stable fuel prices mean the Fuel Clause Charge for January 2026 will be reduced, resulting in a net electricity tariff lower than that in January this year," added Mr. Cheng.

To address challenges posed by extreme weather and evolving societal expectations, maintaining a stable power supply depends on robust infrastructure. HK Electric is leveraging technology to strengthen its infrastructure and enhance overall grid resilience. Through meticulous planning and efficient response, the company is prepared to meet rising expectations and future challenges, ensuring a stable and reliable electricity supply.

On the customers front, HK Electric's Advanced Metering Infrastructure is now fully operational, with smart meters installed for 590,000 customers on Hong Kong and Lamma Islands. This enables customers to better manage their energy consumption, and at the same time enables HK Electric to perform better grid monitoring and improve operational efficiency.

Table 1：

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