The Energy Advisory Committee on Wednesday said a slash in electricity fees will bring limited savings to households, although some businesses should get a boost.

The committee's chairman Simon Wong made the remarks on RTHK as electricity bills are set to go down by more than two percent starting next year because of a reduction in fuel costs.

CLP Power, which serves Kowloon, the New Territories and most outlying islands, will reduce its average net tariff by 2.6 percent, while HK Electric, which supplies electricity to Hong Kong Island and Lamma, will lower the same charge by 2.2 percent.

This means users will save about 3.7 cents per unit of electricity compared with 2025 rates.

"Each household can save about HK$10 per month. But for businesses, the reduction might be more helpful. For instance, a Chinese restaurant needs to pay tens of thousands of dollars in electricity fees," he said.

"If they can save slightly more than two percent, this means their monthly electricity bill will be reduced by HK$1,000 to HK$2,000."

Currently, the net tariff is comprised of a fuel clause charge and a basic tariff, such as operating costs.

While CLP will raise its basic tariff by 3.2 cents, and HK Electric by five cents, the chairman suggested the power firms to better utilise technology to boost cost efficiency.

He also expressed the belief that if there are no major international incidents, the global fuel market will see a downward trend, which will likely reduce the annual electricity fee.

Environmental Association chief executive Yau Wing-kwong, for his part, cautioned that ongoing geopolitical uncertainties might affect fuel costs.

"The world is changing every day. There's a war still going on in Russia and Ukraine, and then there are some instability in the political [and] geographical spectrum. So it really depends on what will happen in the coming years," he said.

"If there's peace, and if there's a new energy source being found, then we would expect a decrease in the fuel costs. Otherwise, fuel costs may increase if there's a war going on."