Secretary for the Environment Edward Yau Tang-wah is calling for a review of the controversial 'control agreements' used by power companies in light of proposed price increases from CLP Power and Hongkong Electric.
'In any agreement, there must be some room for both sides to co-operate [and room for profit-making]. However, if a company always tries to stretch to the limit [of profiteering], shouldn't we take another look at the terms of the agreement?' Yau asked.
'These companies are long-serving, important corporations in Hong Kong ... At the same time they have a social responsibility ... to relieve pressure on consumers.'
Yau's remarks came a day after the two companies stood firm on their proposed price increases, despite a public outcry and government calls for smaller rises. Executive councillor Cheng Yiu-tong described the companies as 'bossy', while Democratic lawmaker Fred Li Wah-ming urged the government to press them to change their minds.
Yau questioned the system of control agreements which mean companies are free to increase prices within certain limits. Current agreements allow CLP Power and Hongkong Electric to make a profit of 9.99 per cent and the increases are intended to maintain that level of profit.
On Friday, CLP Power reiterated that it had already done all it could to minimise its 9.2 per cent increase - dubbed unacceptable by officials .