WEDNESDAY, OCTOBER 15, 1986
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CALL TO CLARIFY HKNIC'S RELATIONSHIP WITH CONTROL SCHEME
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THE GOVERNMENT WAS CALLED UPON TO CLARIFY THE RELATIONSHIP OF THE HONG KONG NUCLEAR INVESTMENT COMPANY (HKNIC) WITH THE SCHEME OF CONTROL BECAUSE THE COMPANY WAS A WHOLLY OWNED SUBSIDIARY OF THE CHINA LIGHT AND POWER COMPANY (CLP).
SPEAKING IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), DR THE HON HO KAM-FAI SAID THE SCHEME OF CONTROL LEGALLY GOVERNED CLP'S FINANCIAL AFFAIRS AND ITS SUBSIDIARIES OR ASSOCIATE COMPANIES SO FAR AS THEY RELATED TO ELECTRICITY-RELATED ACTIVITIES.
DR HO EXPLAINED THAT THE SCHEME PROVIDED FOR A PERMITTED RETURN TO THE CLP WHICH WAS REASONABLE IN RELATION TO THE RISKS INVOLVED AND THE CAPITAL INVESTED.
THEREFORE, HE SAID, THE GOVERNMENT SHOULD CLARIFY WHICH PARTS OF THE DAYA BAY POWER PLANT CONSTRUCTION, EQUIPMENT AND THE TRANSMISSION CABLE NETWORK WERE CONSIDERED LEGITIMATE INVESTMENT BY CLP AND HKNIC.
IN ADDITION, THE METHOD AND BASIS OF CALCULATING THE TARIFFS OF THE NUCLEAR ELECTRICITY CHARGED TO LOCAL CONSUMERS BY THE CLP AFTER THE COMMISSIONING OF THE DAYA BAY PLANT SHOULD ALSO BE CLARIFIED.
DR HO ALSO ASKED THE GOVERNMENT WHETHER IT WOULD IN THE 1988 REVIEW NEGOTIATE WITH THE CLP TO SET UP AN APPROPRIATE LEVEL OF TARIFFS, TAKING INTO ACCOUNT THE INTERESTS OF BOTH THE INVESTORS AND THE CONSUMERS.
THE RESULTS OF THE NEGOTIATIONS SHOULD BE MADE PUBLIC, HE SAID. DR HO POINTED OUT THAT THE STEADY GROWTH OF HONG KONG'S INDUSTRIES AND ECONOMY AND ITS LIFESTYLES WERE TO A SIGNIFICANT EXTENT DEPENDENT ON AN ADEQUATE, CONTINUOUS SUPPLY OF ELECTRICITY.
IF THERE WERE NO DAYA BAY POWER PLANT, HONG KONG WOULD HAVE TO BUILD IN ITS OWN TERRITORY AN ADDITIONAL POWER STATION IN THE LATTER HALF OF 1980'S TO MEET ANTICIPATED DEMAND IN 1993, HE SAID.
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HOWEVER, TO FIND A SITE FOR THE NEW POWER STATION WITH ITS NECESSITY FOR DEEP WATER ACCESS AND THE REQUIREMENTS FOR ENVIRONMENTAL CONSIDERATIONS WOULD BE EXTREMELY DIFFICULT, HE NOTED, ADDING THAT THE INFRASTRUCTURE AND CONSTRUCTION COSTS WOULD BE EXTREMELY HIGH.
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+OUR CONCERN ABOUT ELECTRICITY SUPPLY SHOULD THEREFORE NOT BE ON ITS PRICE ALONE, BUT MORE IMPORTANTLY ON ITS AVAILABILITY IN SUFFICIENT AMOUNT AND IN AN UNINTERRUPTED MANNER, + HE ADDED.
/DR HO