CLP and HK Electric's Scheme of Control Agreement did not reduce the allowable profits by 8%, which caused dissatisfaction among some Legislators. However, Lam Kin-fung, a member of the Legislative Council of the Business Sector and vice-chairman of the Hong Kong Federation of Economic and Democratic Affairs, opposed the reduction of allowable profits, arguing that if the spirit of the contract was not respected, investors would be deterred.


Lam Kin-fung, a member of the Legislative Council of the business sector and vice chairman of the Hong Kong Federation of Economic and Democratic Affairs, opposed the reduction of allowable profits, arguing that if the spirit of the contract was not respected, investors would be discouraged. (Photo by Feng Zijian)

The 8% allowable profit of the two power companies remained unchanged, and the government explained that the two power companies refused to review the level and believed that they could not back down, hoping that the government would have stronger bargaining power to strive for more benefits for the public during the second mid-term review in 2028. Lu Chung-hung of the Federation of Trade Unions criticized the two power companies for being tough, making the "agreement" into a package plan agreement.

Lam Jianfeng said today (29th) that he must not reduce the permitted profits, saying that Hong Kong is currently attracting investment, and the promotion is a mechanism, the rule of law, and a low-tax place, if the spirit of the contract is not respected, investors will be discouraged. He also said that if some people want to set up a data centre in Hong Kong, the lack of power supply and instability will also affect confidence. Lam believes that there should be "rewards and penalties" for the two power plants, but fines and bonuses should be put in the fund to help citizens in need when necessary.

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Starting from January next year, CLP's basic tariff will increase by 1.3% and HK Electric's by 1.4%, but with the decline in fuel prices, the net tariffs of the two power companies will decrease by 4.7% and 4% year-on-year respectively. Lo Wai-kwok, chairman of the Hong Kong Federation of Democrats and member of the Legislative Council of the engineering sector, said that the international situation is volatile, and he is worried that energy prices will still fluctuate in the future, and he hopes that the two power companies will let the parliament know more detailed plans in the future.

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