WEDNESDAY, JULY 16, 1986
26
DOUBTS CAST ON ECONOMIC CONTRIBUTIONS OF PROJECT
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LEGISLATIVE COUNCILLOR THE HON RICHARD LAI TODAY (WEDNESDAY) EXPRESSED HIS RESERVATIONS ABOUT THE POSITIVE ECONOMIC CONTRIBUTIONS OF THE DAYA BAY NUCLEAR POWER PLANT TO HONG KONG.
SPEAKING AT THE ADJOURNMENT DEBATE ON THE ISSUE, MR LAI SAID IF IT COULD NOT BE ASCERTAINED THAT NUCLEAR POWER WAS A MORE COST-EFFECTIVE OPTION TO HANDLE HONG KONG'S ELECTRICITY DEMAND IN THE 1990S, THERE WAS NO REASON WHY HONG KONG SHOULD BE INVOLVED IN THE DAYA BAY PROJECT AT ALL.
ACCORDING TO DR LAI'S CALCULATIONS, THE OVERALL SAVINGS IN THE ELECTRICITY BILL EXPECTED FROM PURCHASING POWER FROM THE DAYA BAY PLANT WOULD ONLY BE ABOUT 12 PER CENT.
HE ADDED THAT THE FIGURE WOULD BE EVEN SMALLER IF THE DIFFERENCE BETWEEN THE COST OF NUCLEAR AND COAL-FIRE GENERATED POWER WAS SMALLER THAN 50 PER CENT, OR IF THE PLANT WAS WORKING UNDER CAPACITY, OR IF THE TOTAL ELECTRICITY DEMAND WAS GREATER THAN EXPECTED.
+DOES THAT AMOUNT OF SAVING ALONE JUSTIFY OUR CONSENT?+ HE ASKED.
DR LAI WAS ALSO NOT SATISFIED THAT THERE WAS ONLY A SIX-YEAR GUARANTEE THAT THE COST OF ELECTRICITY TO BE PURCHASED FROM THE DAYA BAY PLANT WOULD BE NO HIGHER THAN THAT OF COAL-FIRED ELECTRICITY.
+AFTER THE SIX YEARS PERIOD, ANY PRICE INCREASE DUE TO ESCALATION OF COSTS FORESEEN AND UNEXPECTED WILL BE TRANSLATED INTO HIGHER ELECTRICITY COSTS, PERHAPS HIGHER THAN THAT OF CONVENTIONALLY GENERATED POWER, HE SAID.
HE NOTED THAT HONG KONG CONSUMERS WOULD HAVE NO PROTECTION AGAINST SUCH INCREASES BECAUSE BY THEN HONG KONG WOULD NOT HAVE ANY READILY AVAILABLE ENERGY OPTION BUT TO PURCHASE DEARER ELECTRICITY FROM THE DAYA BAY PLANT SINCE THE DEVELOPMENT OF ALTERNATIVE CONVENTIONAL PLANTS WOULD HAVE BEEN SHELVED IN FAVOUR OF THE NUCLEAR STATION.
+AND IF NUCLEAR GENERATED ELECTRICITY IS SO CERTAIN A CHEAPER OPTION, WHY WILL THE GUARANTEE ONLY LAST SIX YEARS AND NOT THE ENTIRE 20 YEARS OF THE JOINT VENTURE CONTRACT?+ HE ARGUED.
/BESIDES,