To ease inflationary pressure faced by households, the Government will credit a monthly electricity charge subsidy of $300 into each domestic tariff electricity account registered with the CLP Power Hong Kong Limited (CLP) and the Hongkong Electric Company Limited (HEC) on the first day of each month from September 2008 to
August 2009. The subsidy can only be used for paying electricity charges. Any unused subsidy in a month can be carried forward to pay billed electricity charges under the same account. The subsidy can be used for offsetting electricity charge payment until 31 August
2014 or the close of the account (whichever is the earlier).
Example
1. HEC customers
If there is no government subsidy, Mr A will be billed $350 and $250 in September and October, 2008 respectively. After the credit, the following information will be shown on his electricity bills:
Bill
for September
$
Charge
for electricity consumed
350
Government
subsidy used
300
Amount
due
50
Government
subsidy carried forward
0
Bill for October
$
Charge
for electricity consumed
250
Government
subsidy used
250
Amount
due
0
Government
subsidy carried forward
50
2. CLP customers
If there is no government subsidy, Mr B will be billed $700 and $500 in September and November, 2008 respectively. After the credit, the following information will be shown on his electricity bills:
Bill for September
ˇ@
$
Charge
for electricity consumed
700
Government
subsidy credited
300
Amount
due
400
Government
subsidy carried forward
0
Bill for November
ˇ@
$
Charge
for electricity consumed
500
Government
subsidy credited
600
Amount
due
0
Government
subsidy carried forward
100
ˇ@
Reference Questions and Answers
Q:
Who will be eligible for the subsidy?
A:
In general, registered residential electricity accounts are eligible for the subsidy.
Q:
Will tenants of service apartments be eligible for the subsidy?
A:
The mode of collecting electricity charges varies in different service apartments. While electricity charges are covered by the rental for some service apartments, some tenants are required to pay the charges to the landlords (instead of the electricity companies). As to whether the tenant of a service apartment is eligible for the subsidy, it will be subject to factors such as having a ˇ§separate electricity meter of an electricity companyˇ¨ installed in that apartment, holding a residential electricity account for the power supply, as well as the agreement between the tenant and the landlord.
Q:
If the meter relates to a leased unit, who (the tenant or the landlord) will receive the subsidy?
A:
The subsidy will not be paid in cash. It will reduce the amount of electricity charges demanded in the electricity bills. As to who will be enjoying the subsidy, this depends on the agreement between the tenant and the landlord.
Q:
Will tenants enjoy the subsidy?
A:
The charges shown on the bills of domestic tariff electricity accounts will be the reduced amount after counting the subsidy. If a tenant is the holder of such an electricity account, he/she only needs to pay the adjusted amount shown on the bill. If the account is registered in the name of the landlord but the tenant is required to pay the amounts as shown on the electricity companyˇ¦s bills, he/she can enjoy the subsidy in the same way.
Q:
Will the subsidy cover vacant flats with registered meters?
A:
In general, properties identified as new residential flats still owned by developers will not be granted the subsidy. However, the subsidy will cover other vacant flats due to the technical difficulty in identifying them.
Q:
When will the subsidy be granted?
A:
The subsidy will be granted from September 2008 to
August 2009. The two electricity companies will credit the subsidy of $300 to each registered residential electricity account on the first day of each month within the subsidy period.
Q:
If a customer moves home and closes his account during the period, can the unused portion of the credited subsidy under the account be transferred to another account or converted to cash?
A:
On account close, the unused portion of the credited subsidy cannot be used further nor converted to cash. However, the customer may still enjoy the remaining phases of the subsidy in his new home under the new account.
Q:
If there is a change in the registered account holder in the middle of the month during the period of crediting the subsidy, will the subsidy be credited to the new and old account holders on a pro-rata basis?
A:
No, the registered account holder as at the first of the month will be entitled to the full $300 credit.
Q:
If a customer closes an account on the first day of a month and another opens a new one on the same day, which account will be given the subsidy?
A:
The new account will be given the subsidy.
Q:
During the credit period, will new registered accounts be entitled to the credit for the month immediately?
A:
If the new account exists on the first day of the month, it will be credited the subsidy amount for the same month. If the account comes into existence on the second day or following days of the month, the account will be credited the subsidy from the next month. Accounts opened after the last credit day (i.e. 1
August 2009) will not be entitled to any credit.
