JEDNOSDAY, NOVAISER 24, 1952
QUOTING STATISTICS, MR BROWN NOTED THAT THE CHANGES IN ELECTRICITY COST FOR INDUSTRIAL CONSUMERS IN THOSE SEVEN PLACES DURING THE TWELVE-MONTH PERIOD ENDED OCTOBER 1982 REGISTERED AN AVERAGE INCREASE OF 13 PER CENT WHILE THAT IN HONG KONG DECREASED BY FIVE PER CENT.
THE ELECTRICITY COST ALSO DECREASED BY FOUR PER CENT FOR COMMERCIAL CONSUMERS AND THREE PER CENT FOR DOMESTIC USERS IN HONG KONG, WHILE MOST OTHER TERRITORIES RECORDED SIGNIFICANT INCREASES.
ALTHOUGH SOME ARGUED THAT THE BASIC TERMS OF THE SCHEMES OF CONTROL FOR THE POWER COMPANIES SHOULD BE CHANGED, MR BROWN CONSIDERED IT IS NECESSARY TO EXTEND THE DURATION OF THE SCHEMES UNTIL 1993 SO AS TO PROVIDE THE CONTINUITY ESSENTIAL FOR THE PLANNING AND FINANCING OF MAJOR PROJECTS.
+SUBSTANTIAL INTERNATIONAL LOANS AT HIGHLY COMPETITIVE INTEREST RATES, TOTALLING MANY BILLIONS OF DOLLARS, HAVE BEEN ARRANGED ON THE SECURITY OF THE SCHEMES IN THEIR PRESENT FORM, HE SAID.
+THESE LOANS WERE ADVANCED ONLY AFTER THE LENDERS HAD SATISFIED THEMSELVES THAT THEIR SECURITY WAS ASSURED THROUGH THE SCHEMES OF CONTROL.
+THERE CAN, THEREFORE, BE NO QUESTION OF CHANGING THE BASIC TERMS OF THE SCHEMES BEFORE 1993 SINCE TO DO SO WOULD CAST DOUBTS ON THE VIABILITY OF HONG KONG IN THE EYES OF INTERNATIONAL FINANCIAL MARKETS.+
MR BROWN ALSO DISAGREED WITH THE SUGGESTION THAT THE SCHEMES SHOULD BE MONITORED BY AN INDEPENDENT BODY.
HE STATED THAT THE COMPANIES ARE TO SUBMIT TO THE GOVERNMENT ON A CONTINUING BASIS FULL DETAILS OF THEIR FINANCIAL FORECASTS, DEMAND AND SALES FORECASTS, CAPITAL EQUIPMENT REQUIREMENTS AND TARIFF PROJECTIONS.
IN ADDITION TO EXAMINING THESE FINANCIAL FORECASTS, HE WENT ON, THE GOVERNMENT CONDUCTS AN ANNUAL AUDIT REVIEW IN WHICH ACTUAL FINANCIAL RESULTS ARE COMPARED WITH FORECASTS SUBMITTED AND FULL EXPLANATIONS AND JUSTIFICATIONS ARE PROVIDED BY THE COMPANIES ON ANY VARIANCES.
+ IN THE LIGHT OF THE REVIEW AND CONTROL FUNCTIONS PERFORMED BY THE GOVERNMENT, THE ESTABLISHMENT OF ANY PUBLIC MONITORING OF ELECTRICITY UTILITIES WOULD BE A DUPLICATION OF WHAT IS ALREADY BEING DONE AND WOULD BE OF DOUBTFUL BENEFIT TO CONSUMERS.
+IN PARTICULAR, THE RESPONSIBILITY FOR ENSURING THAT ELECTRICITY IS AVAILABLE WHEN AND WHERE REQUIRED MUST REMAIN WITH THE POWER COMPANIES - IT CANNOT BE DELEGATED TO A MONITORING BODY,+ MR BROWN STRESSED.