Electricity mechanism to be reviewed

April 21, 2023

The Government will discuss with the two power companies ways to further improve the incentive and penalty mechanism under the Scheme of Control Agreements (SCAs), Secretary for Environment & Ecology Tse Chin-wan said today.


Mr Tse made the remarks after attending a Legislative Council meeting today when he was asked by reporters to respond to Hongkong Electric's explanation about a power supply incident that occurred this week.


Apart from explaining details about the mechanism and the goal behind it, he acknowledged that there is a possibility it can be enhanced.


He said: “Under the existing SCAs, there is an incentive and penalty mechanism. The purpose of the mechanism was to encourage power companies to resume the electricity supply as soon as possible in case of any incident.


“And that mechanism was introduced in the current SCAs in 2017, almost six years ago. Nowadays, given this incident, we believe that mechanism has room for improvement.”


As a result, the environment chief noted that the Government will take the opportunity of the coming mid-term review of the agreement to discuss how to further improve the mechanism with the two power companies.

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