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Anson to be quizzed on power charges

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The Chief Secretary for Administration will be questioned by legislators on Monday over claims an electricity company had overcharged taxpayers by $3.4 billion.

Anson Chan Fang On-sang will attend a public hearing on an investigation by the Audit Commission on alleged overcharging by China Light & Power, now CLP Power, between 1996 and 1998.

The company has denied the claim.

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According to the commission, the building of the power station at Black Point by the company allowed it to raise charges under its profit control arrangement with the Government. This was despite the fact the company knew electricity demand was falling, it is claimed.

Mrs Chan was Secretary for Economic Services from 1987 to 1993. The Executive Council endorsed the plan for China Light & Power to build the station at a meeting in 1992.

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A member of the Public Accounts Committee said it would ask Mrs Chan why the Executive Council agreed to it, what information it had when making the decision and why it believed the demand for electricity would increase as predicted by the company.

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