Hong Kong consumers could see higher gas tariffs as Towngas grapples with rising costs, investments
- Towngas, which last raised its basic tariff by 4.4 per cent in August 2022, is under pressure to lift gas tariffs this year, managing director Peter Wong says
- The city’s sole piped-gas provider beat analysts’ estimates with a 16 per cent jump in net profit to HK$6.07 billion (US$775.8 million) last year
Hong Kong and China Gas (Towngas) said it is under pressure to raise tariffs to keep up with rising costs and investments, after the city’s sole piped-gas supplier posted higher-than-expected profit.
“We do face pressure to lift gas tariffs this year as we need to invest further in our network infrastructure, including that for hydrogen production and distribution, to contribute towards Hong Kong’s decarbonisation effort,” the company’s managing director Peter Wong Wai-yee said on Wednesday, adding that Towngas would adopt a “cautious approach.”
The utility last raised its basic tariff by 4.4 per cent in August 2022 to meet rising operating costs and investment needs.
Towngas will adopt energy-saving measures to reduce costs, which have been rising because of general inflation and higher staff costs, according to Don Cheng Hill-kwong, its general manager for commercial and industrial marketing and sales.
“We will strike a balance between the interests of customers, employees and investors,” he said.
The company, one of the largest natural gas distributors in mainland China, posted a 16 per cent jump in net profit to HK$6.07 billion (US$775.8 million) last year, helped by increasing gas sales on the mainland as economic activity picked up after the Covid pandemic. That result beat analysts’ estimates of HK$5.88 billion.
