TNAG-0635-FCO40-783-Supplies-of-electricity-for-Hong-Kong-1977 — Page 116

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In accordance with paragraph A.2 of this Scheme, China Light will

give prompt written notice to Government, with copy to the other

companies, upon determination that a tariff adjustment is required

pursuant to this paragraph. Such adjustment shall become effective

on the first day of the third month following the end of the Base

Period.

Notwithstanding the foregoing, in order to provide a more suitable

relationship among the component rates, China Light shall have the

right, subject to prior consultation with Government in each case,

to adjust published tariffs from time to time, provided that the

estimated average revenue per unit sold is not thereby increased.

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4. Adjustment of Development Fund Element

An amount per unit sold will be included in China Light's tariffs

applicable to all classes of consumers to provide income for

establishment of the Development Fund Additions, if any, budgeted

for the Companies pursuant to paragraph C.2 of this Scheme. The

amount per unit sold to be included for this purpose upon commence-

ment of this Scheme shall be agreed among the Companies and the

Government based upon the financing plans submitted by the Companies

pursuant to said paragraph C.2. Such amount shall be established

with a view to minimizing short term or year-to-year fluctuations

in tariff charges, while at the same time assuring that funds as

planned are available, from this source. The amounts agreed shall

be subject to review and possible adjustment each time revised

financing plans are submitted to Government in accordance with said