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12
Tuesday, February 26, 1974
CHANGES IN TARIFF SYSTEM OF POWER COMPANY
The Government has considered two major changes. in the tariff
system of the China Light and Power Company Ltd. which, in their overall
effect, will not result in any increase in the current price to the
consumer.
Announcing this today, a Government spokesman said that the
changes would be introduced with effect from April 1, and the Company
was giving due notice to consumers.
He pointed out that some nine years ago, the government and the
Company had agreed on a scheme of control under which the return to the
Company is not permitted to exceed 13 per cent of net fixed assets..
But he added that the scheme of control does not require the
Company to seek the approval of Government to alter their tariffs, provided
the offect does not result in the Company's return exceeding the permitted
maximum. This is not so in the case of the charges now to be made.
'The Government has been concerned to protect consumers from
any unnecessary or excessive charges," said the spokesman, "and this
intention has been achieved in the arrangements now to be introduced
by the Company."
He explained that "on the one hand, there will be an increase
in tariff of one cent per unit, while on the other, a revised formula for
at current oil prices that the calculating the fuel clause will mean →
customer pays approximately one cent per unit less for his electricity.
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"In effect, ......