286 The Environment
The Gas Safety Ordinance regulates the importation, manufacture, storage, transport, supply and use of fuel gas. All gas supply companies, gas installers and contractors must be registered with the Gas Authority (the Director of Electrical and Mechanical Services).
Electricity
The Hongkong Electric Company Limited (HEC) supplies electricity to Hong Kong Island and the neighbouring islands of Ap Lei Chau and Lamma, while the CLP Power Hong Kong Limited (CLP Power) supplies Kowloon and the New Territories, including Lantau and several other outlying islands. The electricity supply to consumers is 50Hz alternating current while the voltage is 220 volts single-phase and 380 volts three- phase.
Both power companies are investor-owned. The Government monitors them through mutually agreed Scheme of Control Agreements. The current 15-year agreements with CLP Power and HEC went into effect on October 1, 1993 and January 1, 1994 respectively with interim reviews carried out every five years. The agreements require the companies to seek the Government's approval for certain aspects of their financial plans, including their projected basic tariff levels. The agreements do not give the companies any exclusive rights. They are not franchises, nor do they define a supply area for either company, or exclude newcomers to the market.
Ahead of the expiry of the current Scheme of Control Agreements in 2008, the Government conducted a two-stage public consultation in 2005 and 2006 on the 'Future Development of the Electricity Market in Hong Kong'. Taking into account the views of the public, the Government continued negotiating with the two power companies in 2007 on the new agreements which contain a number of changes to better safeguard consumers' interests. In the longer term, the Government will further open up the electricity market and will make the necessary preparations. during the term of the new Scheme of Control Agreements.
Currently, HEC has a total installed capacity of 3 756 megawatts (MW) at its Lamma Power Station. The Castle Peak Power Company Limited (CAPCO) supplies electricity to CLP Power from its power stations at Black Point (2 500MW), Castle Peak (4 108MW) and Penny's Bay (300MW).
CLP Power and HEC own their respective transmission and distribution systems. The two transmission systems are interconnected by a cross-harbour link, which provides emergency back-up and some sharing of generating capacity reserve between the two systems. The link has a current total capacity of 720 megavolt- amperes (MVA).
CLP Power's transmission system is also connected to the electricity network in Guangdong Province which facilitates the export and import of electricity to and from the province. The electricity sold to Guangdong is from CLP Power's existing reserve generating capacity. Its sale is governed by an agreement with the HKSAR Government under which CLP Power's consumers are given priority of supply and 80 per cent of the profit from the sales. At the same time, CLP Power buys about 70 per