Deputy Secretary for Economic Development & Labour Howard Lee says any companies wishing to supply power to Hong Kong should ensure their plans comply with all legal requirements, including safety, land use, planning and environmental-friendliness.

Speaking on a radio talk show this morning, Mr Lee said although China HK Power has expressed an interest in supplying electricity to Hong Kong, the Government has not received any plan from the company.

Noting the city's power market is not operated under franchise, Mr Lee said the Government will assess applications according to the requirements and all applicants will be treated in the same way.

Opening up power market

Mr Lee said the consultation paper on the electricity market's future development has proposed making preparations to open it up.

He said this would require a legal framework to ensure that new power suppliers can join the existing power supply network without affecting the system's stability.

The Government must formulate new laws, conduct technical studies and consider whether there is a need for a separate regulatory body.

Measures to avoid over-investment

Noting the Government has proposed reducing the term of the new Scheme of Control Agreements with the two power companies to 10 years, Mr Lee hoped all the preparation work for opening up the power market can be finalised before the new agreement expires.

Mr Lee said the Government will closely scrutinise the two power companies' future development plans  to avoid over-investment which may trigger an unreasonable tariff increase.