XN000022-1982-04-14 — Page 5

WEDNESDAY, APRIL 14, 1982

REFERRING TO THE REQUEST FOR AN ASSURANCE THAT A FAIR PRICE WAS BEING PAID FOR ELECTRICITY AND THAT AN EFFECTIVE MONITORING MACHINE WAS IN OPERATION, MR JEAFFRESON SAID HE WAS GLAD THAT MR LEE USED THE WORD +MONITORING+,

+FOR THERE SEEMS TO BE A WIDESPREAD MISBELIEF THAT THE GOVERNMENT'S ROLE IS TO 'SUPERVISE' THE POWER COMPANIES,+ HE SAID.

THE GOVERNMENT AGENCIES INVOLVED IN THE WORK WERE THE MAS...... NAMED+ FINANCIAL MONITORING UNIT AND THE OFFICE OF THE PRINCIPAL GOVERNMENT ELECTRICAL AND MECHANICAL ENGINEER, WHOSE JOB WAS TO ENSURE THAT THE CONSUMERS GOT A RELIABLE SERVİCE BOTH NOW AND ¦ THE FUTURE.

+THE FINANCIAL MONITORING UNIT IS CONCERNED THAT CONSUMERS SHOULD GET IT AT A REASONABLE PRICE, THAT SHAREHOLDERS GET A REASONABLE RETURN ON THEIR INVESTMENT AND WITH THE GENERAL FINANCIAL WELL-BEING OF THE COMPANIES. THE PRINCIPAL GOVERNMENT ELECTRICAL AND MECHANICAL ENGINEER IS CONCERNED WITH THE TECHNICAL ASPECTS, HE EXPLAINED.

HE SAID THE COMPANIES, FOR THEIR PART, SUBMIT THEIR PLANS FOR EXPANSION FOR THE COMING FIVE YEARS, INCLUDING THEIR PROGRAMMES FOR CAPITAL INVESTMENT AND FULL FINANCING PLANS, AND THESE ARE EXAMINED BY THE TWO GOVERNMENT AGENCIES.

+WHEN BOTH ARE SATISFIED AND THE SENIOR LEVEL OF THE GOVERNMENT ARE SATISFIED, THE RESULTS ARE PUT TO EXECUTIVE COUNCIL FOR ADVICE, MR JEAFFRESON SAID.

REFERRING TO MR LEE'S QUESTION AS TO WHETHER THE MONITORING WAS EFFECTIVE, MR JEAFFRESON SAID THE ANSWER WAS A MATTER OF JUDGEMENT.+

BUT THE TWO AGENCIES WERE STAFFED BY PEOPLE WITH PROFESSIONAL EXPERTISE AND IF THIS WAS THOUGHT INSUFFICIENT TO COVER A PARTICULAR ASPECT, CONSULTANTS WERE CALLED TO HELP.

+SO AT LEAST THE MACHINERY IS THERE. ALL I CAN SAY IS THAT THE PRICE OF ELECTRICITY IN HONG KONG COMPARES FAVOURABLY WITH PRICES FOR ELECTRICITY ELSEWHERE IN THE REGION.

+AND THE RELIABILITY OF HONG KONG'S ELECTRICITY SUPPLY I WOULD HAVE THOUGHT UNPARALLELLED, HE SAID.

DISCUSSING MR CHEUNG YAN-LUNG'S QUESTION OF THE HIGHER TARIFFS PAID FOR SUPPLY OF ELECTRICITY IN CHEUNG CHAU THAN IN THE NEW TERRITORIES, MR JEAFFRESON SAID THAT THE PROBLEM HAD BEEN TACKLED FOR MANY YEARS AND HE THOUGHT THAT A SOLUTION SATISFACTORY TO CONSUMERS IN CHEUNG CHAU WAS NOT FAR AWAY+.

15