ENG-2002 — Page 293

LAND, PUBLIC WORKS AND UTILITIES

The CLP Power and HEC transmission systems are interconnected by a cross- harbour link. This provides emergency back-up and achieves cost savings to consumers through economic energy transfers between the two systems and a reduction in the amount of generating capacity that needs to be kept as spinning reserve against the tripping of other units. The interconnection link, commissioned in 1981, currently has a total capacity of 720 megavolt-amperes (MVA) (i.e. 720 000 kilovolt-amperes (kVA)).

CLP Power's transmission system is also interconnected with the electricity network in Guangdong Province which facilitates the export and import of electricity to and from the province. The electricity sales to Guangdong are made from existing reserve generating capacity of CLP Power and are governed by an agreement with the Government, signed in March 1992, under which CLP Power's consumers receive priority of supply and 80 per cent of the profit from the sales.

In 1985, the Hong Kong Nuclear Investment Company Limited (a wholly-owned subsidiary of the CLP Holdings Limited) and the Guangdong Nuclear Investment Company Limited (now wholly owned by the China Guangdong Nuclear Power Holding Company Limited) established the Guangdong Nuclear Power Joint Venture Company Limited, to build and operate the Guangdong Nuclear Power Station at Daya Bay in Guangdong. This station comprises two 984MW pressurised water reactors which went into commercial operation in February and May 1994, respectively. CLP Power undertook to buy about 70 per cent of the station's power to meet part of the longer-term demand for electricity in its supply area.

Through its affiliated company, the Hong Kong Pumped Storage Development Company Limited, CLP Power has the right to use 50 per cent of the 1200MW capacity of Phase 1 of the Guangzhou Pumped Storage Power Station, at Conghua, Off-peak electricity from the CAPCO system and the Guangdong Nuclear Power Station is used to pump water from a lower reservoir to an upper one. The water is allowed to flow downhill during the day to generate electricity to meet Hong Kong's peak demand.

The Government signed Demand Side Management (DSM) Agreements with the respective power companies in May 2000 and approved the companies' DSM Resource Plans the next month. The power companies implemented their three-year DSM programmes, including rebate schemes for lighting and air-conditioning systems for non-residential customers, as well as other education and information schemes, starting from July 2000. CLP Power and HEC ceased accepting new applications for joining the lighting rebate schemes in July and August 2001, respectively, due to exhaustion of the allocated budgets. As for the air-conditioning rebate schemes, both power companies ceased accepting new applications after December 31, 2002.

The Electricity Ordinance, with its subsidiary regulations, is the main enabling legislation on electrical safety. It sets out the legal framework encompassing all the areas within which the concerned legislation shall apply, including the registration of electrical contractors/workers and competent persons, the safety standards and requirements for electricity supply, electricity supply lines, electrical wiring and products.

Since 1990, the regulations concerning registration of electrical contractors and workers, the safety of electrical wiring, the supply of safe household electrical products, and the protection of electricity supply lines from third party damage have come into effect in stages. At December, some 8 500 electrical contractors and 55 000

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