MONDAY, NOVEMBER 30, 1981
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MONITORING OF POWER COMPANIES
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COMMENTING ON RECENT REPORTS REGARDING THE ROLE OF THE GOVERNMENT IN MONITORING THE PERFORMANCE OF THE POWER COMPANIES, A GOVERNMENT SPOKESMAN SAID THE PURPOSE OF THE ONGOING REVIEW WAS TO ENSURE THAT THE PUBLIC RECEIVED A GUARANTEED SUPPLY AT A REASONABLE COST, HAVING REGARD TO THE COMMERCIAL VIABILITY OF THE COMPANIES, AND THAT THIS WAS BEING ACHIEVED THROUGH THE SCHEMES OF CONTROL.
NEVERTHELESS, THE SCHEMES ARE KEPT UNDER PERIODIC REVIEW AND IMPROVEMENTS ARE MADE WHERE NECESSAY.
THE SPOKESMAN SAID THE GOVERNMENT ACCEPTED THAT THE CHANGES IN THE POWER COMPANIES TARIFF STRUCTURES FOR 1982 WERE NECESSARY FOR THE CONTINUATION OF A RELIABLE SUPPLY OF ELECTRICITY AT A TIME OF GROWING DEMAND AND CONTINUING INFLATION.
ANY INCREASE IN TARIFFS MUST BE APPROVED BY THE GOVERNMENT AND A DECISION ON THE FINAL STRUCTURE IS TAKEN ONLY AFTER A MOST THOROUGH STUDY OF THE CIRCUMSTANCES INVOLVED.
→BEFORE AN APPLICATION FOR AN INCREASE IS CONSIDERED THE COMPANIES MUST SUBMIT FULL DETAILS OF THEIR FINANCIAL FORECASTS, JEMAND AND SALES FORECASTS AND CAPITAL EQUIPMENT REQUIREMENTS TÓ THE GOVERNMENT AND THESE ARE CLOSELY EXAMINED BY FULLY-QUALIFIED ACCOUNTANTS, THE SPOKESMAN SAID. +THE TECHNICAL ASPECTS ARE EXAMINED BY FULLY-QUALIFIED ELECTRICAL ENGINEERS AND WHERE ANY EXPERTISE IS LACKING WITHIN THE GOVERNMENT, IT IS SOUGHT OUTSIDE.+
THE SPOKESMAN STRESSED THAT THE REQUIREMENTS FOR ADDITIONAL CAPITAL EQUIPMENT WOULD ONLY BE ACCEPTED IF JUSTIFIED BY THE PROJECTED DEMAND FOR ELECTRICITY, SO NEITHER COMPANY WAS IN FACT ABLE TO EXPAND UNNECESSARILY.
+ IN ADDITION TO EXAMINING FINANCIAL FORECASTS, THE GOVERNMENT'S ACCOUNTANTS DO AN ANNUAL AUDIT REVIEW IN WHICH ACTUAL FINANCIAL RESULTS ARE COMPARED WITH FORECASTS SUBMITTED, AND FULL EXPLANATION AND JUSTIFICATION ARE SOUGHT FOR ANY DISCREPANCIES, THE SPOKESMAN
ADDED,
THE SPOKESMAN NOTED THAT THE NEW TARIFF RATES OF BOTH COMPANIES COMPARED FAVOURABLY WITH THE CHARGES LEVIED BY OTHER ELECTRICITY UNDERTAKINGS IN THE REGION, AND THAT HONG KONG HAD A BETTER RECORD FOR RELIABILITY IN THE SUPPLY OF ELECTRICITY,
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