Core Viewpoint - The average net electricity tariffs for China Light and Power (CLP) and Hongkong Electric (HK Electric) will be reduced in 2026, with CLP lowering its rates by 2.6% and HK Electric by 2.2%, benefiting from stable international fuel prices [1][2]. Group 1: CLP's Electricity Tariff Adjustment - CLP will reduce its electricity price by 2.6% starting January 1, 2026, with the average net electricity price set at 140.6 cents per kWh, down 3.7 cents from 2025 [1]. - The fuel adjustment fee will decrease by 6.9 cents to 39.4 cents per kWh, while the average basic electricity price will increase to 101.2 cents per kWh due to rising operational costs [1]. - CLP plans to allocate HKD 270 million through the "CLP Community Energy Saving Fund" to support energy-saving initiatives and assist vulnerable communities [1]. Group 2: HK Electric's Electricity Tariff Adjustment - HK Electric's basic electricity fee will rise to 127.9 cents per kWh, an increase of 5 cents from 2025, while the fuel adjustment fee will decrease to 35.4 cents per kWh, down 8.7 cents from January of this year [2]. - The average net electricity fee for HK Electric will be 163.3 cents per kWh in January 2026, a reduction of 3.7 cents or 2.2% compared to January 2025 [2]. - For a residential customer using 275 kWh per month, the electricity bill will be HKD 352.1, saving HKD 10.1 compared to the previous year [2]. Group 3: Operational and Investment Insights - HK Electric emphasizes prudent planning and investment in updating aging infrastructure to maintain reliable electricity supply while avoiding unnecessary capital expenditures [2][3]. - The company is also enhancing its IT systems to counter increasing cyber-attack threats [2]. - HK Electric supports government environmental policies by constructing natural gas power plants and transitioning from coal to gas to improve emissions [2].