XN000022-1995-08-23 — Page 2

I -

Monitoring of power companies' performance

In response to press enquiries on a complaint made by Miss Christine Loh to the Commissioner for Administrative Complaints (COMAC) today (Wednesday), a spokesman for the Economic Services Branch (ESB) explained that the branch is responsible for policies on electricity supply and the monitoring of the performance of the power companies in accordance with the Scheme of Control Agreements between the Government and the companies.

"The Secretary for Economic Services is of the view that the Schemes of Control have been properly administered and welcomes any investigation by COMAC if considered necessary by the Commissioner," the spokesman said.

The spokesman noted that Miss Loh's complaint was principally concerned with government policies rather than any specific administrative actions taken by ESB. He said ESB would consider the detailed points on policies made by Miss Loh and would respond to them fully in due course.

"The basic principles behind the government policies in implementing the Schemes of Control are to ensure that a continuous and reliable supply of electricity is available to support the rapidly increasing economic and social development of Hong Kong and that the services are supplied efficiently and at reasonable prices," added the spokesman.

"Power companies must plan ahead to meet future demands as it takes a long time (typically about seven years) to plan and build a power plant.

"We agree that there is a need to increase efficiency in power generation and use but we must also ensure that other important factors such as sufficient capacity to meet future demand and high reliability in power supply are taken into account in determining our energy supply policies.

"ESB is also pursuing ways of improving efficiency in power generation and use, including the undertaking of pilot energy saving projects by the power companies," the spokesman said.