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Following is the transcript of remarks by the Secretary for the Environment, Mr Wong Kam-sing, on 2014-2018 Development Plans and 2014 Tariff Review of the two power companies after attending the LegCo Panel on Economic Development meeting today (December 10):
Reporter: Could you give a brief summary in English please?
Secretary for the Environment: We approved their (two power companies) forthcoming five-year development plans. Basically we guarded the gate so that their developments are confined to those really necessary. For instance, for HEC (Hongkong Electric Company Limited), the approved amount is only about half of the proposed infrastructure and requirement. At the same time, following the forthcoming tariff review, it is announced that for HEC, their future tariff will not have any increase, so it is kept as before. For CLP (CLP Power Hong Kong Limited and Castle Peak Power Company Limited), the increase is 3.9 per cent. At the same time, we noted that in particular for CLP, due to their increase in the use of gas for power generation, they would have higher pressure regarding tariff in the coming years. So we are asking them to try their endeavours so that they can reduce the pressure on tariff in the coming few years.
Reporter: The year after next, it appears on the paper that the required increase for CLP would be almost 12 per cent.
Secretary for the Environment: Based on their latest data, they say that it is a two-digit increase. But it is an estimate at this stage based on the available information. So we are requiring them to try different means, for instance, to use more clean coal or to review with Daya Bay to import slightly more nuclear power based on the current infrastructure, such that they can reduce the actual tariff later.
Reporter: So basically you accepted their reasoning?
Secretary for the Environment: Those are estimates at this stage so we are working with them and try every means so that we could reduce the actual impact in the coming years.
Reporter: You are going to launch a consultation soon. Can you tell us when the consultation will begin and what the consultation seeks to know?
Secretary for the Environment: I answer this probably the last question. Regarding the fuel mix review, we would discuss with the society about different fuel mix including their implications on the cost and the environmental implications on the safety and security aspects. So we have a matrix to summarise all these for the review with society very soon. After that, we would summarise the consultation and then start another consultation about the market regulations after 2018. That would be another opportunity for us to review the regulations of these two companies' operations.
Reporter: Are you sure you will (be) looking into the Scheme of Control?
Secretary for the Environment: I think we should review various options so that we can maximise the benefits for the society at large.
(Please also refer to the Chinese portion of the transcript.)
Ends/Tuesday, December 10, 2013
Issued at HKT 21:15
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