Electricity in Hong Kong

It is a must for the government get involved in the price settings of these companies in terms of getting revenue. The Hong Kong government allocates for them the rate of tax to be taxed depending on their supply rates therefore the more the supply the more the tax rates increases. Due to their monopolistic power the government has to step in to protect the common citizen from being denied for a 24 hour supply level or being charged high tariffs. But in some situations the government does not have to intervene again in regard ness of the restrictions it had put in place towards the companies since they need also to have power.

In the issue of importing electricity, it is not the company that import but it is the government in order to cater for the common citizen. The island of Kowloon is the one that imports electricity from China and here the tariffs are the same with the other company because now it is the only company in the island that supplies electricity.

The electricity price used to be high for there was only one company that used to supply in the whole country, but now considering that there are two companies the tariffs have been lowered due to competition. Despite their monopolistic powers they have to lower their tariffs due to the restrictions set asides by the government failure to which actions will be taken.