Electricity will cost slightly more for Hongkongers next year, with tariffs rising by 0.9 percent on Hong Kong Island and 0.98 percent in Kowloon and the New Territories.

The city's two power firms, CLP and HK Electric, said even though fuel costs stabilised this year, ongoing geopolitical tensions meant they had to take on a more cautious approach.

HK Electric noted that it also needs to pump in extra resources to further boost service reliability.

"To handle more frequent extreme weather conditions, we need to improve our infrastructure so that we can still deliver reliable electricity to our customers even during bad weather. Also, we need to update our old and outdated facilities. All these investments will put pressure on electricity prices," its managing director Francis Cheng said.

CLP's managing director, Joseph Law, pointed out that the company is dealing with challenges like inflation, rising material costs, and a tense labour force -- all of which are driving up its operational expenses.

"But we understand that people are concerned about electricity prices, and we will keep working to improve our operating efficiency by managing our finances wisely and controlling expenses," he said.

"While international fuel prices have stabilised somewhat over the past year, geopolitical risks remain, and global fuel costs are still relatively high, so the outlook isn’t too bright. We’ll continue to take a careful approach in managing our expenses."

A climate economist said while the increases this time around are in line with estimates, he expects the tariff hikes to exacerbate in the years to come.

"From the international perspective, I would say there is still uncertainty about the fuel cost, especially the fluctuation in oil prices that might affect the future natural gas price. I think we should pay more attention," William Yu, CEO of World Green Organisation, told RTHK.

Several lawmakers also raised concerns about the SAR's reliance on imported fuels, and urged the administration to speed up plans to find alternative energy supply sources.

Environment secretary Tse Chin-wan said in response that the government has been negotiating with mainland officials about boosting its zero-carbon energy supply.

He noted that there's land set aside in Tseung Kwan O for receiving nuclear power and the project is scheduled for completion by 2035.