HK Electric Investments - 2015 Annual Report

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CEO'S REPORT
8 | HK ELECTRIC INVESTMENTS
In 2015, HK Electric remained one of the world’s most
reliable suppliers of electricity, an indispensable partner to
Hong Kong’s economic and social success. Our customer
service and supply standards are world-class, with affordable
tariffs that were frozen for 2014 and 2015. We have also
met our obligations to SSU holders by achieving a steady
profit and meeting our distributable income targets.
OPERATION REVIEW
During the year, HK Electric generated over 12,000 GWh of
electricity to our customer base of 572,000 (2014: 570,000)
on Hong Kong Island and Lamma Island. Electricity sales
decreased slightly by 0.7% to 10,879 million kWh (2014:
10,955 million kWh). There was an increase in residential
and commercial customers.
Global coal prices remained soft throughout the year,
enabling us to source coal at advantageous rates. Declines in
world oil prices eased pressure on the cost of natural gas.
We are proud to have once again
delivered on all our stakeholder pledges
in our second year of operations as a
listed entity on the main board of the
Hong Kong Stock Exchange.
A
RELIABLE PARTNER
FOR
HONG KONG
CONTRIBUTING TO THE FUTURE
DEVELOPMENT OF HONG KONG’S ENERGY
MARKET
In 2015, the government conducted a public consultation
on the future development of the electricity market to
determine the way forward after 2018, when the current
Scheme of Control Agreement (SCA) expires.
Following extensive stakeholder research, HK Electric
concluded that the current SCA provides the most
effective framework for power companies to achieve the
government’s energy policy objectives with respect to safety,
reliability, affordability and environmental protection.
With a power supply reliability rating of over 99.999% since
1997, HK Electric has been able to achieve an average of
less than one minute of unplanned power interruption per
customer per year since 2009. During the term of this SCA,
we have made investments in clean energy and reduced
significantly our emissions of sulphur dioxide (SO2), nitrogen
oxide (NOX) and respirable suspended particulates (RSP) by
40% to 90%. Tariffs had been frozen for two years before