Small Businesses Pressure Grows as Hong Kong Power Fuel Surcharges Jump Nearly 80%
SCMP · 1 SOURCESabout 2 hours ago2 MIN
Summary
Hong Kong's two dominant power suppliers have sharply escalated fuel surcharges, with HK Electric imposing its fourth consecutive monthly increase since May while CLP Power has raised charges for six straight months. The surge in electricity costs—driven partly by the Middle East conflict—has reignited calls for targeted subsidies to protect small and medium-sized enterprises. Industry groups warn that many SME owners cannot fully pass rising costs to price-sensitive consumers, further compressing already thin profit margins.
Key Points
- HK Electric's fuel clause charge climbed to 60.7 HK cents per kWh in September, marking a 78.5% surge from 26 cents per kWh in March and a 5.9% jump from August
- CLP Power raised its fuel surcharge to 45.1 cents per unit for September, up 15% from 39.2 cents per unit in March, affecting customers across Kowloon, the New Territories, Lantau and outlying islands
- Pamela Mak Mei-yee, honorary president of the Hong Kong Small and Medium Enterprises Association, warned that electricity costs are unavoidable for every shop owner even if not their largest expense
- Mak proposed three relief measures: fuel-cost rebates, instalment payment options, and subsidies for energy-saving equipment to ease cash flow pressure on smaller businesses
- She also suggested issuing consumption vouchers to eligible households for use at local shops, which would simultaneously ease household burdens while boosting the catering, retail and services sectors
Why It Matters
For Hong Kong's SME sector, which forms the backbone of the city's economy and employment, sustained electricity cost increases without relief could force difficult decisions between absorbing losses, cutting staff, or raising prices in a competitive market. The Middle East geopolitical situation shows no immediate signs of abating, suggesting fuel costs—and therefore electricity surcharges—may remain elevated for the foreseeable future, making government intervention increasingly urgent .
For Hong Kong's SME sector, which forms the backbone of the city's economy and employment, sustained electricity cost increases without relief could force difficult decisions between absorbing losses, cutting staff, or raising prices in a competitive market. The Middle East geopolitical situation shows no immediate signs of abating, suggesting fuel costs—and therefore electricity surcharges—may remain elevated for the foreseeable future, making government intervention increasingly urgent .