New Scheme of Control Agreements with the two power companies
Control on excess generating capacity
Mr CHAN Chun-ying noted that the measure to control excess generating capacity would be strengthened under the new SCAs. He enquired about the mechanism for determining excess generating capacity.
PAS(ER) said that at present, 50% of the net asset value of mechanical and electrical equipment relating to new generating facility found to be excessive upon commissioning to meet the latest electricity demand would be excluded from the power companies’ ANFA for calculating the permitted return until the demand caught up with generation capacity. Under the new SCAs, the power companies agreed that the percentage of net asset value of mechanical and electrical equipment to be excluded from ANFA would be increased from 50% to 100% such that they would have to take on a larger share of the financial consequence resulting from their demand forecast.
Market development
Mr CHAN Chun-ying noted that the Government would undertake the preparatory work, including conducting relevant studies in respect of grid access and enhanced interconnection, as well as requiring the power companies to provide segregated generation and non-generation cost data, during the next SCA period to pave the way for introducing potential new suppliers in future. He asked about the reasons for taking such a long time for relevant work, and if a concrete timetable and a list of key milestones to be achieved at different stages within the period were available to facilitate the public to monitor the progress. He also suggested that the Government should provide interim reports to LegCo on this matter.