XN000022-1996-01-10 — Page 61

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CLP's forecast on future increase on local demand

Following is a question by the Hon Lau Chin-shek and a written reply by the Secretary for Economic Services, Mr Gordon Siu, in the Legislative Council today (Wednesday):

Question:

The latest forecast made by the China Light and Power Company (CLP) in 1994 predicted a 5.1% annual increase in the maximum demand of the local system over the next few years, but the demand for 1995 has shown a negative growth. In this connection, will the Government inform this Council:

(a)

(b)

(c)

whether it is aware of the reasons for the negative growth last year;

whether the Government will ask CLP to revise its forecast on the future increase of the maximum demand of the local system in order to provide a more realistic prediction; and

whether, in the light of the increase in the actual demand of the local system being much lower than what was predicted, the Government will revise CLP's future development programme in order to prevent CLP from expanding its fixed assets without valid reasons to the detriment of the interest of the consumers?

+

Reply:

(a)

The China Light and Power Company forecast in October 1994 that the local maximum demand on its system would grow at an average annual rate of 5.1% from 1995 to 1999, with maximum demand in 1995 expected to be 4,920 megawatts. The actual local maximum demand for electricity on the Company's system in 1995 was 4,720 megawatts, some 4% less than forecast. The decline was due to the relatively cooler summer in 1995, slower economic activity and the continuing decline of electricity consumption in the manufacturing sector of Hong Kong.