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WEDNESDAY, OCTOBER 15, 1986
THE CONDITIONAL NATURE OF THE INITIAL ENDORSEMENT GIVEN BY THE GOVERNMENT WAS DELIBERATE. ARRANGEMENTS FOR THE PURCHASE OF ELECTRICITY FROM DAYA BAY HAD NOT, AT THAT STAGE, BEEN FINALISED. IN THE INTEREST OF CONSUMERS, THE GOVERNMENT CONVEYED TO CLP THE VIEW THAT FURTHER DISCUSSIONS SHOULD TAKE PLACE ON THE PROPOSED FISCAL AND COMMERCIAL TERMS.
AFTER A YEAR OF INTENSE NEGOTIATIONS, ADDITIONAL BENEFITS FOR CONSUMERS WERE SECURED. THESE INCLUDED: CONCESSIONARY TAX RATES FOR THE PROJECT: THE INTRODUCTION OF A FLEXIBILITY PROVISION CONCERNING THE PURCHASE OF ELECTRICITY SHOULD DEMAND BE LESS THAN THAT FORECAST AND, FOR THE LARGER PART OF THE ELECTRICITY TO BE BOUGHT, CEILING ON THE PRICE THAT WOULD BE PAID DURING THE FIRST SIX YEARS.
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MR JACOBS SAID THAT AS TO THE IMPACT OF DAYA BAY ON THE TARIFF, AFTER BOTH GENERATING UNITS WERE COMMISSIONED, NUCLEAR ELECTRICITY PURCHASED IN THE MID 1990'S WOULD BE APPROXIMATELY 25 PER CENT OF CLP'S TOTAL ELECTRICITY REQUIREMENT.
THE PERCENTAGE SHARE OF NUCLEAR ELECTRICITY IN THE SYSTEM WOULD GRADUALLY DECLINE AS THE TOTAL CLP SALES CONTINUED TO GROW AFTER THE MID 1990'S.
DURING THE FIRST SIX YEARS OF OPERATION, THE MAJOR PART OF ELECTRICITY PURCHASED WOULD BE SUBJECT TO A PRICE CEILING SO THAT IT COST NO MORE THAN ELECTRICITY GENERATED BY A COAL-FIRED STATION IN HONG KONG.
HONG KONG CONSUMERS WOULD NOT BE REQUIRED TO BEAR THE RISK OF PAYING MORE FOR THIS PORTION OF THE NUCLEAR ELECTRICITY PURCHASE IF IT TURNED OUT TO BE MORE EXPENSIVE DURING THE INITIAL YEARS OF OPERATION.
+ THE REMAINING PORTION OF THE NUCLEAR ELECTRICITY NOT SUBJECT TO THE PRICE CEILING WILL AMOUNT TO APPROXIMATELY 10 PER CENT OF CLP'S TOTAL ANNUAL ELECTRICITY REQUIREMENT AND WILL NOT CAUSE ANY SIGNIFICANT IMPACT TO THE OVERALL TARIFF, HE SAID.
IN THE UNLIKELY EVENT OF THE NUCLEAR ELECTRICITY PRICE BEING, SAY, 25 PER CENT HIGHER THAN THAT PRESENTLY ENVISAGED, THE IMPACT ON THE CLP TARIFF WILL BE LESS THAN 2 PER CENT.+
AFTER THE FIRST SIX YEARS OF OPERATION THE PERCENTAGE SHARE OF NUCLEAR ELECTRICITY USED IN THE SYSTEM WOULD GRADUALLY REDUCE AS CONSUMER DEMAND INCREASED. ACCORDINGLY, THE IMPACT OF ITS PRICE ON THE CLP CONSUMER TARIFF WOULD ALSO GRADUALLY REDUCE.
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