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Hutchison Whampoa
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Power policies

The Government insists that it has made adjustments to its procedures and will not repeat the past mistakes which led to an embarrassing over-capacity of power. But nothing its spokesmen said has convinced the Economic Services Panel that the administration is any nearer to producing a long-term, comprehensive energy policy.

Yesterday's meeting in Legco to discuss Scheme of Control arrangements with the two power companies raised more questions than it answered. Although no decisions have been taken on Hongkong Electric's plan to build another power station on Lamma, or on the feasibility of a system of interconnection between Hongkong Electric and China Light & Power, there is no firm indication that the Government is seeking a solution which satisfies the main requirements of power generation in the modern world.

That would entail a scheme which combined benefits for the consumer with protection for the environment based on a built-in energy saving programme: it would also require a much tougher line with both power companies.

Until now, the utilities have had it their own way. The administration apparently regards it as a breakthrough to have a new deal in which excess capacity is no longer calculated when profits are set. But it is too early to tell how much effect this will have on energy bills, and there is some way to go before the public is satisfied that the interests of consumers come before those of commercial companies when policy is formulated.

There is no logical reason, for example, for the Government's insistence that outside consultants should have experience of the local generating system. Why not call in consultants who could bring a fresh approach to the issue? Insisting on local knowledge simply narrows the field, resulting in an unsatisfactory situation where one of the consultancy firms acting for the Government has previously done work for one of the power companies. But new approaches to old problems may be just what is needed to reach the right decisions.

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