HKELECTRIC: Fuel adjustment fee dropped to 30.4 cents in April and may significantly rise starting mid-year

HKELECTRIC-SS (02638.HK) announced that the fuel adjustment fee for April will be reduced from March's HKD 0.34 per kWh to HKD 0.304. A spokesperson stated that the monthly adjustment mechanism has a deferral effect, and the current fuel adjustment fee does not reflect the recent instability in the Middle East's impact on global fuel supply and prices. If fuel costs remain high or rise further, it is expected that the fuel adjustment fee will significantly increase starting mid-year.

Given the ongoing geopolitical tensions, particularly the rapidly changing situation in the Middle East, the global energy market has been volatile since March, leading to a substantial rise in fuel prices and high fuel costs. However, under the current mechanism, the fuel adjustment fee experiences a deferral effect during significant fluctuations in fuel prices.

Therefore, the fuel adjustment fee for April will be reduced from March's HKD 0.34 per kWh to HKD 0.304, resulting in an average net electricity fee of HKD 1.583 for April, down from HKD 1.619 in March. However, the spokesperson pointed out that if the tension in the international fuel market persists or worsens, the fuel adjustment fee will inevitably rise significantly starting mid-year