XN000022-1974-02-26 — Page 13

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Tuesday, February 26, 1974

CHANGES IN TARIFF SYSTEM OF POWER COMPANY

The Government has considered two major changes. in the tariff

system of the China Light and Power Company Ltd. which, in their overall

effect, will not result in any increase in the current price to the

consumer.

Announcing this today, a Government spokesman said that the

changes would be introduced with effect from April 1, and the Company

was giving due notice to consumers.

He pointed out that some nine years ago, the government and the

Company had agreed on a scheme of control under which the return to the

Company is not permitted to exceed 13 per cent of net fixed assets..

But he added that the scheme of control does not require the

Company to seek the approval of Government to alter their tariffs, provided

the offect does not result in the Company's return exceeding the permitted

maximum. This is not so in the case of the charges now to be made.

'The Government has been concerned to protect consumers from

any unnecessary or excessive charges," said the spokesman, "and this

intention has been achieved in the arrangements now to be introduced

by the Company."

He explained that "on the one hand, there will be an increase

in tariff of one cent per unit, while on the other, a revised formula for

at current oil prices that the calculating the fuel clause will mean →

customer pays approximately one cent per unit less for his electricity.

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"In effect, ......