(c)
-
16 -
-
of the plans in place to establish a fair access charge so that each company can use the other's grid to distribute electricity to customers?
Reply:
The Hong Kong Electric Company Limited (HEC) and the China Light & Power Company Limited (CLP) do not have exclusive rights to supply electricity in their respective supply areas, nor will they be permitted to build additional electricity generating capacity without full justification to the Government. The information sought by the question is as follows:
(a)
(b)
(c)
CLP and HEC sell electricity to one another in emergency situations or, more routinely, when one company finds on a particular day that it needs to operate plant with a high operating cost, such as a diesel-fired gas turbine, to meet peak demand and the other company can transfer power to meet that demand by raising output from plant with a lower fuel cost. The price per Kwh at which such transactions take place is calculated having regard to the fuel costs and other circumstances prevailing at the time and can vary over a wide range. Transaction prices have varied recently from 19.1 to 27.2 cents per Kwh but can reach considerably higher levels.
The question of reduction of excess capacity (in CLP's system) can be addressed more effectively through deferral of generating units due to be installed at Black Point Power Station, rather than through encouragement to CLP and HEC to compete for customers in each other's supply area.
The Government has no plans to determine a charge for CLP and HEC to access each other's network. The question of charging for such access is a commercial matter for the companies themselves.
End
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