HONG KONG LEGISLATIVE COUNCIL 15 October 1986
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freely between the Government and the commercial organisations concerned, and this flow of information has, in turn, permitted issues of importance to be discussed frankly. The generation of power requires massive investment. Inevitably, much of the capital is provided by foreign investors. If, in the future, companies or other investors were to feel that the Government could not be relied upon to safeguard commercially sensitive information, then they would not provide that information. And they might also hesitate to invest. To allow such a situation to develop would have far reaching and adverse consequential implications for Hong Kong as a whole. We cannot allow this to happen.
As to the impact of Daya Bay on the tariff, after both generating units are · commissioned, nuclear electricity purchased in the mid 1990's will be approxi- mately 25 per cent of CLP's total electricity requirement. The percentage share of nuclear electricity in the system will gradually decline as the total CLP sales continue to grow after the mid 1990's.
During the first six years of operation, the major part of electricity purchased will be subject to a price ceiling so that it costs no more than electricity generated by a coal-fired station in Hong Kong. Many members had com- mented on this point. Hong Kong consumers will not be required to bear the risk of paying more for this portion of the nuclear electricity purchase if it turns out to be more expensive during the initial years of operation.
The remaining portion of the nuclear electricity not subject to the price ceiling will amount to approximately 10 per cent of CLP's total annual electricity requirement and will not cause any significant impact to the overall tariff. In the unlikely event of the nuclear electricity price being, say, 25 per cent higher than that presently envisaged, the impact on the CLP tariff will be less than 2 per
cent.
Sir, after the first six years of operation the percentage share of nuclear electricity used in the system will gradually reduce as consumer demand increases. Accordingly, the impact of its price on the CLP consumer tariff will also gradually reduce.
As you mentioned Sir, in your opening address to the Council last Wednesday, the nuclear accident at Chernobyl provoked intense debate world-wide about the safety of civil nuclear energy programmes, even though the Chernobyl plant was of a design not used in other countries. Given the anxieties felt world-wide as a result of the Chernobyl disaster it was in no way surprising that deep and genuine concern as I have mentioned, should also be expressed in Hong Kong about the safety of the plant at Daya Bay, some 50 km away from Hong Kong. The Government fully appreciates the concern and realises the importance of pro- viding information on the safety of the project. Thus, in early May, immediately after the Chernobyl incident, the Government issued to this Council two in- formation notes with a view to assuring Members that the Chernobyl incident would have no direct effect on Hong Kong and also reminding Members of some of the safety considerations involved in the Daya Bay project.
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