Secretary for Economic Development & Labour Stephen Ip says competition in the electricity market is welcomed as it will improve consumer choice and help meet the Government's goal of ensuring a reliable and safe electricity supply at reasonable prices.

Vertex Group announced yesterday the establishment of joint-venture company China Hong Kong Power, with China Power International Holdings. It will generate and transmit power to Hong Kong, source electricity from the Mainland and invest in new power plants.

Mr Ip said today the consultation on the post-2008 electricity market arrangement is ongoing, and noted the existing Scheme of Control Agreements which the Government signed with the two existing power companies will expire in 2008.

Views collected in the consultation, which ends April 30, will be considered when mapping out the broad framework for development of the post-2008 electricity market.

The consultation paper has proposed a number of options, including increasing the interconnection capability among power companies and importing electricity from the Mainland. Read the consultation paper here.