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Tuesday, February 26, 1974

"In effect, therefore, these two changes cancel each other out."

In addition to the two major changes, the spokesman said

that there would also be a minor change in the rate reduction rebate, under

which a slightly lower rebate would now be passed on to the general tariff

consumer,

He explained that under the scheme of control, a rebate is payable

to the customer from a fund maintained by the Company. Over the last

few years, this fund has been progressively decreasing, because the amount

paid into it by the Company, under the terms of the arrangement with the

Government, has been less than the amount paid out to consumers in the

form of rebate.

"The change that will be implemented to correct this imbalance

will affect the consumer only very slightly" he said. "The smallest

bills will not be affected at all, and no bill will increase by more than

$3.50."

He added that to date no proposals for changes in tariff had been

submitted to the Government by the Hong Kong Electric Co. Ltd.

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