HK Electric chief says fuel adjustment charge will still go up

The Middle East situation is keeping natural gas prices hight.

In HK Electric's power generation mix, 70% is gas-fired, and the fuel adjustment charge will rise by over 30% next month.

Managing Director of HK Electric Francis Cheng says the fuel adjustment charge will continue to rise for some time.

He says when Iran bombed Qatar's natural gas facilities, Qatar stopped exporting gas, and the company had to buy on the spot market, with prices several times higher than before.

Cheng explaines the suppliers are expected to provide gas at contract price around mid-to-late July, but as the fuel adjustment charge has a lag effect, it will be some time before the charge can come down.