Power session: Secretary for the Environment Edward Yau discusses clean power generation on a radio show.

The Environment Bureau is reviewing the air quality index used in Hong Kong and intends to make preliminary proposals around the end of the year.

Speaking on a radio programme today Secretary for the Environment Edward Yau said the Government hopes local power firms can gradually replace the use of coal with natural gas for power generation to cut air pollutants.

To help achieve this a memorandum of understanding has been signed with the Mainland to ensure a stable gas supply over the next 20 years, he said, adding the deal will also increase the use of clean energy in the Guangdong region.

Stressing the Government will monitor power tariffs, Mr Yau said CLP Power has been allowed to raise its fuel surcharge due to the coal price surge in the past year. Despite this the firm lowered tariffs on October 1.

He said oil prices are also under close watch and the Government will continue to introduce more new oil companies to increase market competition.