Hong Kong lawmakers slam new penalty structure for power outages imposed on energy firms, dismiss it as ‘numbers game’
- Fine to be determined by duration of power outage and number of customers affected under new penalty mechanism
- Existing reward structure for restoring power may offset effects of new penalty, lawmaker Edward Leung Hei says
Hong Kong lawmakers on Wednesday slammed a new penalty mechanism imposed on the city’s two power companies to address major electricity disruptions and called it a “numbers game” as an existing rewards structure could offset the fines.
They also questioned whether electricity bills, cut by 7.4 per cent by CLP Power and 16 per cent by HK Electric from next January, would go up again with unstable fuel prices amid continued geopolitical conflicts.
The new rules, under which the penalty would be determined by the duration of a power outage and the number of customers affected, were among the agreements announced on Tuesday between the government and the energy firms after an interim review of the regulatory regime known as the scheme of control.
CLP Power serves Kowloon, the New Territories and most outlying islands, while HK Electric supplies energy to Hong Kong and Lamma islands.
The companies refused to reduce the 8 per cent annual permitted rate of return on their average net fixed assets after the review.
