Legislative Council Questions

Question asked by Hon Fred LI regarding the progress of a technical study on interconnection of the electricity supply systems of the two power companies

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Following is a question by the Hon Fred Li Wah-ming and a written reply by the Secretary for Economic Services, Ms Sandra Lee, in the Legislative Council today (June 12):

Question:

The Government commissioned a technical study on the interconnection of the electricity supply systems of the two power companies in February 2001 and estimated that the study would be completed in June this year. In this connection, will the Government inform this Council:

(a) of the current progress of the study;

(b) whether it will publish the report of the study; if not, of the reasons for that;

(c) of the preliminary conclusions of the study on power interconnection; and

(d) whether the study contains an estimation of the amount of investments required of the two power companies for further interconnection; if so, of the amount involved, and whether it has assessed the impact of such investments on the level of electricity tariffs in the future?

Reply:

Madam President,

With regard to the technical study on increased interconnection between the two power companies commissioned by the Electrical and Mechanical Services Department (EMSD) (the Study), our reply to the four parts of the question is as follows:

(a) The Study is underway and is expected to be completed end of this month.

(b) On receipt of the final report of the Study, EMSD will examine in detail its findings and recommendations, and take them into consideration in the context of the electricity market review currently in progress. EMSD will release the report of the Study at an appropriate time.

(c) As the Study is still in progress, it is pre-mature to talk about conclusions of the Study at this point in time.

(d) The Study is a detailed technical study aimed at identifying issues involved in increasing interconnection between the power companies. It also examines the impact of interconnection on the existing transmission network of the two power companies, including interconnection transfer capacity, system stability, load flow, routing, timing and issues relating to reliability of electricity supply. Economic issues arising from this technical study, such as the impact of increased interconnection on tariff, would need to be further considered in the light of the findings and recommendations.

Wednesday, June 12, 2002