TNAG-0769-FCO40-973-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 83

2

5.

(a) that the Working Group should be reactivated; (b) that the reactivated Group should study the

technical and financial implications of system integration, also known as "Bulk Energy Transfer" on the basis of each company adding to its own generating capacity but doing so having regard to the requirements of the two systems taken together;

(c) that the members of the Working Group, namely, the Secretary for Economic Services and Messrs Stones (CLP), Chen (HKE), Osborne (PGEME) and Sankey (Senior Treasury Accountant, ESB) should form themselves into what might be appropriately called a Steering Group to mastermind the planning exercise and to perform a liaison function between the two companies, on the one hand, and the two companies together and the Government on the other.

We envisaged that the Steering Group would set up two small working groups consisting of the necessary experts from each company. We agreed these working groups would

deal with:

(a) the technical aspects of laying the cable and

the basis of determining the merit order of generating plant and methods of load scheduling; (b) the financial and commercial aspects of inter-

connection having regard, of course, to the fact that each company will be operating under similar

schemes of control.

We also agreed that

(c) if thought necessary, these working groups

could seek advice from within and without Hong Kong; and

we further agreed that, thereafter, the Steering Group should take a close look at

(d) a co-ordinated investment programme;

and I myself would.suggest that the Steering Group might then go on to consider

(e) what consequential changes might be necessary

to the two schemes of control.

/6....