A bold bid for a slice of Hong Kong's electricity market by tiny media firm Vertex Communications & Technology Group has fuelled prospects for drastic changes to the industry dominated by century-old utilities CLP Holdings and Hongkong Electric Holdings.
Arguably the first investor to confront the duopoly, Vertex says it has partnered with China Power International Holding, an independent power producer headed by former premier Li Peng's daughter Li Xiaolin and the unlisted parent of red chip China Power International Development. China Power has yet to confirm the alliance.
Vertex, claiming a 30-70 joint venture with China Power, plans to import low-cost electricity from across the border into new towns in the New Territories by as early as year-end.
Vertex chairman Steven Poon Kwok-lim has yet to map out the details and was still 'busy' formulating the business plan, his secretary said yesterday.
A former CLP Power general manager and Liberal Party legislator, Mr Poon's ultimate ambition is to plug into Hong Kong Island, the core service area of Hongkong Electric, with a near-term plan to bite into CLP's pie, the New Territories, Kowloon and Lantau.
Although the move was welcomed by legislators and the government, which says cross-border supply arrangements are being considered in its review of the industry's scheme of control, market watchers and analysts poured cold water on the technical and financial feasibility of the potential investment.
