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We once again outperformed all statutory emissions caps in
2016 and continued to encourage and educate the public
on energy efficiency and environmental awareness through
our community involvement programmes such as the Green
Hong Kong Green and Smart Power Campaign. We offered
energy audit advisory services for non-residential customers
and funded energy improvement works at older residential
blocks through the Smart Power Fund.
We remain an employer of choice, offering a healthy work-
life balance, stimulating opportunities and planned career
progression to employees from recruitment to retirement. I
am honoured that we were ranked one of the Top 10 Most
Attractive Employers in Hong Kong by Randstad.
Our involvement in the community remained unwavering,
as our dedicated team of volunteers offered their time
and expertise to the causes close to our hearts; such
as supporting the vulnerable elderly, participating in
community-wide initiatives and educating the public on
conserving the environment. We pressed ahead with our
efforts to minimise the amount of waste we produced and
recycled unavoidable waste.
REGULATORY FRAMEWORK FOR A STABLE
SECTOR
One of the priorities for the Hong Kong Government during
this period is to set the regulatory framework that will drive
the sector upon the expiry of the current Scheme of Control
Agreement (SCA). Responses to a public consultation on the
future development of the electricity market conducted in
2015 indicated that the majority of the community felt the
current arrangement should be maintained. We share this
view.
The SCA framework has worked well and allowed the
fulfillment of the Government’s energy policy objectives
of safety, reliability, affordability and environmental
protection. It has been effective in balancing the interests of
consumers and industry players, appropriately incentivising
the long-term investments necessary to evolve Hong Kong’s
electricity infrastructure to meet the needs of the 21st
century particularly in addressing climate change and air
quality concerns.
On this note, we are encouraged by the reasonably good
progress that has been made in our ongoing deliberations
with the Government over the future regulatory framework.
The discussion is in an advanced stage now with both sides
acknowledging the need for an early agreement with which
HK Electric will be able to make timely investments to achieve
the Government’s energy and environmental objectives.
OUTLOOK
With socio-economic uncertainties likely to prevail in Hong
Kong and around the world, it is important to conclude
the deliberations over the future shape of the regulatory
framework for the power industry, as early as possible. A
secure regulatory environment and a reasonable rate of
return are crucial for industry players to make appropriate
investments to maintain a high-quality, affordable and
cleaner supply of electricity. This is particularly pertinent in
the case of HK Electric with the impending retirement of
many of our coal-fired units and the pressing need to reduce
Hong Kong’s air emission and improve its carbon footprint.
Another key priority will be the smooth construction and
completion of the three large infrastructural projects for the
two new gas-fired generating units and the FSRU which will
contribute greatly to Hong Kong’s green energy future.
Our expanded use of natural gas for power generation will
increase our fuel costs from 2020, in turn exerting pressure
on tariffs. We will plan appropriate measures to minimise the
impact of these future increases on our customers.
To honour Hong Kong’s commitments in the COP 21
agreement, the community as a whole needs to work to
improve energy efficiency in both private and public life.
We will work with the Government, and also intensify our
community engagement efforts, adopting both best practice
from overseas and developing our own measures applicable
to the unique conditions of Hong Kong.
As always, I would like to thank our staff for their excellent
service and the constant “can do” approach. Their skills,
attitude and dedication are central to our continued success.
Fok Kin Ning, Canning
Chairman
Hong Kong, 21 March 2017
2016 ANNUAL REPORT
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