The Executive Council on Tuesday (28th) approved the two power companies, Hong Kong Power and CLP, to adjust their electricity tariffs for the coming year, and the two power companies agreed to set up special electricity tariff relief measures during the energy crisis, while introducing a new penalty mechanism for power outages. Leung Hei, a member of the Hong Kong Island East of the Legislative Council and a member of the Democratic Alliance for the Betterment of Hong Kong, described in a radio program today (29th) that the new penalty mechanism is just a "numbers game", taking the power outage accident of nearly one hour in a wide area of Hong Kong Island in April this year as an example, it also failed to trigger the new penalty mechanism.

▼ April 4 Power outages in many districts on Hong Kong Island ▼


Hong Kong Island power outage in April The total number of power outage hours under the new mechanism is "only" 4.180 million minutes

One of the concerns of the mid-term review of the two power control agreements is the existing incentive and penalty mechanism for power outages/power supply, which the Hong Kong government did not amend on Tuesday, but introduced a new penalty mechanism, which requires the deduction of about $1500 million for a cumulative power outage of 25 million minutes (2000,500 hours) and $8 million for HK Electric's total of about 3 million minutes (about 1000,<> hours).

However, the Deputy Secretary for Environment and Ecology (EEB), Ng Kong Mei-ni, admitted on Tuesday that the 4-minute power outage on HK Electric Island in April this year was only more than 48.180 million minutes under the new mechanism, which was not enough to trigger the penalty mechanism.

Hong Kong East Member of the Legislative Council, DAB Leung Hei. (File photo/Photo by Lin Jingyi)

Leung Hee-chung and the penalty mechanism is on par with that of the MTR

Liang Xi said on a radio program today that adding a penalty mechanism for large-scale power outages still failed to solve the problem of the agreement itself. For example, he pointed out that the power outage on Hong Kong Island in April failed to trigger the penalty mechanism, criticizing the penalty mechanism as a numbers game, so the best approach would be to calculate the same as the MTR, on a single incident basis, rather than calculating the annual average.

He also pointed out that he understood that it would be difficult for the Government to review the allowable profits of the two power plants in the medium term, and agreed that the two power plants could indeed provide relatively stable power supply compared with other places, but hoped that in the event of a major accident, the two power plants would bear social responsibility.

A new penalty mechanism has been introduced for power outages

According to the new penalty mechanism in the control agreement, a new penalty mechanism is added to the control agreement, which is calculated and penalized through the new indicator "Customer Interruption Duration (CID)", which is the sum of the "number of customers with power interruption" multiplied by the "supply interruption schedule" of each group of affected customers in each major power interruption incident, expressed in minutes, and the penalty is divided into two levels.

If the interruption exceeds 1 million minutes, the penalty for allowable returns will be adjusted by -500.0%; If the interruption exceeds 015 million minutes, the penalty adjustment for the allowable return is -3.000%. The Government stresses that the formulation of the penalty will refer to the existing penalty for MTR service suspension due to an accident, and that the authorities will sign a new agreement with the two power companies as soon as possible, and there will be no other annexes and restrictions in the process, hoping to complete the work within one to two months.

On April 4, there was a widespread power outage in Heng Fa Estate. (Reader provided)

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