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The Environment
enhance efforts to promote energy saving. The remaining demand for energy will be met by coal-fired generation. This will help Hong Kong achieve its 2020 environmental target.
In 2015, the government also completed a three-year programme that conducted energy-cum- carbon audits on 120 government buildings and public facilities to identify carbon reduction measures. To encourage companies to adopt regular carbon auditing, the government also launched the Carbon Footprint Repository in December 2014. As of December 2015, 67 listed companies had disclosed their carbon management experience and practices to the public through the repository's website.
Energy
Electricity
The Hongkong Electric Company Limited (HK Electric) supplies electricity to Hong Kong Island and the neighbouring islands of Ap Lei Chau and Lamma, while 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 50 hertz 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. These require the companies to seek the government's approval for certain aspects of their development plans, including their projected basic tariff levels, so as to ensure the continued supply of reliable, safe and efficient electricity at reasonable prices. 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. The permitted rate of return of the power companies on their average net fixed assets under the agreements is 9.99 per cent.
The current agreements are for 10-year terms ending in 2018, with an option exercisable by the government to extend for five more years, until 2023. On 31 March 2015, the government launched a three-month consultation to solicit the public's views on the future development of the electricity market. Having regard to the views received, the government will discuss with the power companies new agreements with improved terms to take effect after the current ones expire.
HK Electric has a total installed capacity of 3,757 megawatts at its Lamma Power Station. The Castle Peak Power Company Limited 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 HK Electric own their respective transmission and distribution systems. The two transmission systems are interconnected by a cross-harbour link, which provides emergency backup and some sharing of generating capacity reserve between the two systems. The link has a total capacity of 720 megavoltamperes.
CLP Power's transmission system is also connected to the Guangdong electricity network, which facilitates the export and import of electricity to and from the province. CLP Power buys
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