How well are consumers being served by the power companies? A study of the competitiveness of the Hong Kong economy conducted by Professor Michael Enright at the Harvard Business School questions the efficiency of our monopolised utilities.
Do we have sufficient electricity generating capacity for our needs over the next few years, or is there justification for Hongkong Electric's proposal to build a new power station at one of three sites - Po Toi Island, an artificial island off Po Toi, or Lamma Island? A consultancy study on demand for electricity to 2005, and ways of meeting that demand, was commissioned by the Economic Services Branch as an independent review of the need for further generating capacity.
This study has been completed and Friends of the Earth have asked to see it to confirm the justification of building more power stations. Even though we made clear we did not want to see sensitive commercial information, access to the study has been refused on the grounds of commercial confidence.
What public benefit is being served by keeping secret the results of this study? The Hong Kong public will have to pay for the additional generating capacity and at the same time our environment will suffer. In addition, it is clear that Hong Kong has a massive over-capacity within the electricity generating sector, with China Light & Power delaying the commissioning of a previously planned generating plant.
Only minimal attempts have been made by Hongkong Electric or China Light to promote the efficient use of energy in the territory or to reduce peak load.
Before any proposal for a new power station is considered, the Government has a responsibility to evaluate the alternative cheapest methods of meeting future demand, including the more efficient use of existing resources by more sharing of peak load between the two power companies. In this way China Light's excess capacity can be utilised by Hongkong Electric, avoiding the need for another power station. If the Government is serious about public consultation then data and reports, particularly on major development projects, should be made available to the public. We hope that a copy of the report will be forthcoming so the public can decide whether it is in Hong Kong's interest to build more power stations.