Advisory team retained
The government has re-appointed all 17 members of its Energy Advisory Committee, which will play a decisive role in determining the post-2008 regulatory framework for the power sector.
Members of the committee, chaired by Otto Poon Lok-to, have had their appointments extended for two years from July 15.
The members include academics, government representatives and consultants.
A government official said the committee would advise the administration on two major issues - an interim review of the Scheme of Control agreement to be carried out next year and a road map for the regulatory environment of the power industry after the agreement expires in 2008 - on top of other energy-related issues.
The Scheme of Control agreement governs the electricity sector, which ties the return of service providers - CLP Holdings and Hongkong Electric Holdings - to their investments.
They are allowed to earn a maximum of 15 per cent return on their power asset bases.
The agreement is due to be reviewed next year before its expiry in 2008.
Results of the interim review are expected to form part of a reference to be used in the drafting of the post-2008 regulatory framework.
An industry sources said: 'In the next 18 months, I expect to see intensive and frequent discussions with the government over the post-2008 regulatory framework.'
The Energy Advisory Committee will advise the government on proposals to be formulated by the electricity team headed by deregulation veteran Ben Li Pun-sang.
The electricity team is a task force set up by the Economic Development and Labour Bureau to formulate proposals, particularly those for post-2008 power regulations.