XN000022-1984-03-12 — Page 4

MONDAY, MARGE 12, 1954

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+NOR CAN IT BE SAID THAT THE INCREASE IN DEMAND AND PER-CAPITA CONSUMPTION HAS TAKEN PLACE AT ANY SACRIFICE IN COST,+ MR OSBORNE SAID.

IN MAY, 1983, A SURVEY CARRIED OUT BY THE LOCAL ELECTRICITY SUPPLY INDUSTRIES SHOWED THAT HONG KONG HAD THE LOWEST COMMERCIAL CHARGE FOR ELECTRICITY IN THE REGION.

IT ALSO SHOWED THAT IT HAD THE SECOND LOWEST INDUSTRIAL CHARGE IN THE REGION, BEHIND TAIWAN, BUT WAS CHEAPER THAN JAPAN, KOREA, MALAYSIA, THE PHILIPPINES, SINGAPORE AND THAILAND.

DOMESTIC CONSUMERS IN HONG KONG WERE FOUND TO PAY THE THIRD LOWEST RATE IN THE REGION, BEHIND ONLY THAILAND AND TAIWAN.

+THEREFORE, I THINK IT IS FAIR TO SAY THAT THE GROWTH IN HONG KONG'S GENERATING CAPACITY HAS BEEN BOTH SWIFT AND PRUDENT,+ MR OSBORNE SAID.

HE SAID ALMOST 40 PER CENT OF THE PRESENT GENERATING CAPACITY OF 5 000 MEGAWATTS WAS COMPLETED IN THE LAST FIVE YEARS AT A COST OF $12 BILLION.

IN THE COMING YEAR, TWO NEW 350 MEGAWATT COAL-FIRED GENERATING UNITS WERE SCHEDULED TO BE COMPLETED AT A TOTAL COST OF SOME $6 BILLION.

THIS WOULD BE FOLLOWED BY THE CONSTRUCTION OF FOUR 660 MEGAWATT COAL-FIRED UNITS, AT AN ESTIMATED COST OF $18 BILLION.

+BY THE EARLY 1990'S, THE GENERATING CAPACITY IN HONG KONG SHOULD AGAIN HAVE DOUBLED, TO ABOUT 10 000 MEGAWATTS,+ MR OSBORNE SAID.

+THIS ADDITIONAL CAPAPCITY WILL ENSURE THAT HONG KONG IS ABLE TO MEET THE GROWING DEMANDS OF ITS DOMESTIC AND INDUSTRIAL CONSUMERS IN THE YEARS AHEAD.+

HE SAID SOME HAD QUESTIONED THE NEED FOR ADDITIONAL GENERATING CAPACITY, BUT SUGGESTED THAT THE PROVISION OF ELECTRICAL ENERGY TO ANY COMMUNITY WAS A USEFUL INDEX OF ITS ECONOMIC PROSPERITY.

+GIVEN THE RELATIVE POSITION OF HONG KONG IN THE ENERGY CONSUMPTION TABLE FOR THE REGION, IT IS CLEAR THAT THERE WILL BE INCREASING DEMAND FOR ELECTRICITY IN THE YEARS AHEAD, + HE SAID.

+THE GOVERNMENT, IN CONJUNCTION WITH THE TWO POWER COMPANIES, IS CONTINUING TO PLAN FOR SUFFICIENT CAPACITY TO ENABLE HONG KONG TO EXPLOIT ITS ECONOMIC POTENTIAL TO THE FULL AND IN THIS RESPECT ACKNOWLEDGE THE IMPORTANT ROLE PLAYED BY MEMBERS OF YOUR ASSOCIATION IN ENSURING THE ELECTRICITY, AS PROVIDED BY THE POWER COMPANIES, REACHES THE CONSUMER IN A SAFE AND PROPER MANNER.+

THE EXHIBITION,