Letters | Hong Kong’s zero-carbon goal is just as vital as having affordable power

Readers discuss the upcoming review of the agreements that regulate electricity supply in Hong Kong, the relaxation of visa requirements to China, the merits of having an integrated health app, and the aborted taxi driver strike

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Residential buildings on Hong Kong Island are seen on November 3. Hong Kong must seize the opportunity to establish a forward-looking and long-term strategy for a zero-carbon transition, while keeping the costs of electricity affordable. Photo: Yik Yeung-man

Published: 11:30am, 28 Nov 2023

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The Legislative Council’s review of the five-year development plans of Hong Kong’s two power companies, HK Electric and CLP Power, is expected to start today, as part of the interim review of the government’s agreements with the two companies that regulate electricity supply in the city.

The Scheme of Control Agreements are a policy framework between the government and the power companies that sets out the future fuel mix, shareholder returns and performance targets. Under these agreements, the government also conducts an annual review of the electricity tariffs.

While electricity tariffs are undoubtedly important, they should not be the sole consideration.

In 2014, when Hong Kong was deliberating on its fuel mix, one suggestion was to buy electricity directly from the mainland to keep electricity tariffs affordable. But this also means Hong Kong would have little control over the fuel mix and be restricted in exploring other net-zero alternatives.

Thus, rather than focus only on cost considerations, Hong Kong should aim to forge agreements that ensure fair resource competition and an alignment of standards in the Greater Bay Area, an environmentally sustainable energy mix, and greater resilience against unexpected events such as a power outage.