Energy-saving measures by CLP Power, Hongkong Electric may be in the works

The city's two power producers are not expected to face an overhaul of the rules they operate under as yet, though they are likely to introduce minor improvements to raise energy efficiency, environmentalists and sources close to the matter say.

The rules governing CLP Power and Hongkong Electric, including the profits they are allowed to make, are being reviewed by the Environment Bureau. The results of the review will be reported to the government's energy advisers this afternoon.

A source familiar with the talks said all three parties agreed the companies should provide more resources to improve energy efficiency, such as electricity audits. These measures are believed to be related to buildings and electrical appliances.

William Yu Yuen-ping, chief executive of the World Green Organisation, a local charity, hoped to see higher energy-saving targets and more energy audits. "We do not expect significant amendments to the control schemes, but we do see room to manoeuvre on energy savings," Yu said.

He was referring to regulatory agreements reached between the government and power suppliers that limited their returns to 9.99 per cent of their net fixed assets.

Under the new measures, both companies must set up a loan fund to help users adopt energy-saving initiatives. CLP must set aside HK$25 million each year, while HK Electric must fundHK$12.5 million annually.

If they can meet specified savings, the firms would be entitled to extra financial rewards.