To ease inflationary pressure faced by households, the Government announced in 2008 the provision of a maximum subsidy of $3,600 to each residential electricity account. The sum was fully credited to relevant accounts in twelve monthly instalments from September 2008 to August 2009. In February 2011, the Government announced that it would further provide a maximum subsidy of $1,800 to each residential electricity account. A monthly electricity charges subsidy of $150 will be credited to each domestic tariff electricity account registered with CLP Power Hong Kong Limited (CLP) and The Hongkong Electric Company Limited (HEC) on the first day of each month from July 2011 to June 2012.
The subsidy can only be used for paying electricity charges. Any unused subsidy can be carried forward to pay billed electricity charges under the same account. The subsidy can be used for offsetting electricity charges payment until 31 August 2014 or the close of the account (whichever is the earlier).
Example
1. HEC customers (Monthly billing)
If there is no government subsidy, Mr A will be billed $200 and $120 in July and August, 2011 respectively. After the credit, the following information will be shown on his electricity bills:
Bill for July
$
Charge
for electricity consumed
200
Government
subsidy used
150
Amount
due
50
Government
subsidy carried forward
0
Bill for August
$
Charge
for electricity consumed
120
Government
subsidy used
120
Amount
due
0
Government
subsidy carried forward
30
2. CLP customers (Bimonthly billing)
If there is no government subsidy, Mr B will be billed $400 and $240 in July and September, 2011 respectively. After the credit, the following information will be shown on his electricity bills:
Bill for July
ˇ@
$
Charge
for electricity consumed
400
Government
subsidy credited
150
Amount
due
250
Government
subsidy carried forward
0
Bill for September
ˇ@
$
Charge
for electricity consumed
240
Government
subsidy credited
300
Amount
due
0
Government
subsidy carried forward
60
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 accounts with unused subsidy provided in September 2008 to August 2009 be granted the subsidy announced in February 2011?
A:
All residential electricity accounts, including accounts with unused subsidy will be granted 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 electricity account relates to a leased unit, who (the tenant or the landlord) will receive the subsidy?
A:
The subsidy 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. Generally speaking, if the tenant of the leased unit 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 under the agreement, he/she can enjoy the subsidy in the same way.
Q:
Will tenants living in bedspace apartments and cubicles be eligible for the subsidy?
A:
The subsidy 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 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 announced in 2011 be granted?
A:
The subsidy will be granted from July 2011 to June 2012. The two electricity companies will credit the subsidy of $150 to each registered residential electricity account on the first day of each month within the period.
Q:
If a customer closes his account before 31 August 2014 due to removal or other reasons, 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.
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 accounts on a pro-rata basis?
A:
No, the registered account holder as at the first of the month will be entitled to the full $150 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 for the same meter, 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 June 2012) will not be entitled to any credit.
