The Hongkong Electric Company Limited (HEC) supplies electricity to Hong Kong
Island and the neighbouring islands of Ap Lei Chau and Lamma while the CLP Power
Hong Kong Limited (CLP Power) supplies Kowloon and the New Territories, including
Lantau and several other outlying islands. The electricity supply to consumers is
50Hz alternating current while the voltage is 220 volts single-phase and 380 volts
three-phase.
Both power companies are investor-owned. The Government monitors them
through mutually agreed Scheme of Control Agreements. The current 15-year
agreements with CLP Power and HEC came into effect on October 1, 1993 and
January 1, 1994 respectively with interim reviews at five-year intervals. The
agreements require the companies to seek the Government's approval for certain
aspects of their financial plans, including projected basic tariff levels. The agreements
do not give the companies any exclusive rights. They are not franchises, nor do they
define a supply area for either company or exclude newcomers to the market.
In 2006, the Government completed the second round of public consultations
on the future development of the electricity market after expiry of the current
Scheme of Control Agreements in 2008. Taking into account the views of the public
received, the Government is now negotiating with the two power companies on new
agreements which contain a number of changes to improve the safeguard for
consumers' interests. In the longer term, the Government will further open up the
electricity market and will make the necessary preparation during the term of the
new Scheme of Control Agreements. At year-end, HEC had a total installed capacity
of 3 756 megawatts (MW) at its Lamma Power Station. Its first 335MW gas
combined-cycle generator at the new Lamma Extension Power Station was
commissioned in October.
The Castle Peak Power Company Limited (CAPCO) supplies electricity to CLP
Power from its power stations at Black Point (2 500MW), Castle Peak (4 108MW) and
Penny's Bay (300MW). The eighth 312.5MW gas combined-cycle generator at Black
Point was commissioned in May.
CLP Power and HEC own their respective transmission and distribution systems.
The two transmission systems are interconnected by a cross-harbour link. This
provides emergency back-up and some sharing of generating capacity reserve
between the two systems. The link has a current total capacity of 720 megavolt-amperes
(MVA).
CLP Power's transmission system is also connected with the electricity network in
Guangdong Province which facilitates the export and import of electricity to and from
the province. The electricity sold to Guangdong is from CLP Power's existing reserve
generating capacity. Its sale is governed by an agreement with the Government under
which CLP Power's consumers are given priority of supply and 80 per cent of the
profit from the sales. At the same time, CLP Power buys about 70 per cent of the
power generated by the Guangdong Nuclear Power Station at Daya Bay, which has
two 984 MW pressurised water reactors, to meet part of the longer-term demand for
electricity in its supply area.
CLP Power also has the right to use up to 50 per cent of the 1 200MW capacity
of Phase 1 of the Guangzhou Pumped Storage Power Station, at Conghua. Off-peak
period electricity from the CAPCO system and the Guangdong Nuclear Power Station
is stored in the pumped storage power station, which generates hydro-electricity to
meet Hong Kong's demand during peak periods.
There are regulations under the Electricity Ordinance governing the registration
of electrical contractors and workers and competent persons, safety of electrical
wiring, supply of safe household electrical products and protection of electricity
supply lines from third party damage.
As at December, some 8 500 electrical contractors and 68 000 electrical workers
held valid registration papers and 620 competent persons were approved for laying
underground cables.
In 2006, the Government conducted some 12 600 site inspections to check the
safety standards of electrical installations and electrical product supply outlets and
works sites near electricity supply lines. Prosecution and disciplinary actions were
initiated in 555 cases.
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