How unhealthy is Hong Kong's current electricity market?
The current Scheme of Control Agreements (SCAs) claim to promote energy efficiency by providing the power companies with incentives. In reality, these incentives have minimal impact as they do not involve any penalties. At the same time, the two power companies have no peak demand reduction targets, and the two electricity companies keep on expanding their capacity to meet demand - but when more generation units are built, the cost of electricity goes up!
As the current agreements guarantee that the two companies receive 9.9 per cent profit per year, the total cost of building new generation units will be borne by consumers.
On the other hand, more people are demanding greener electricity, but Hong Kong does not currently offer a fair price for distributed generation and grid connection like the US, Germany and mainland China do.
This means that even if you were to put solar panels on your rooftop, you have no way to sell the electricity you generate. Interested parties have to negotiate directly with the power companies for the terms of connecting their power to the grid – a complicated process which ultimately hinders the development of renewable energy.
It's time for the electricity market to get in better shape! The government has just kicked off a three-month public consultation exercise on the future development of the electricity market. If you want a fairer, more environmentally-friendly electricity market like we do, sign this petition letter now wwf.hk/fitelectricitye!
Joint statement: Hong Kong needs a “fitter” electricity market:wwf.hk/jointelectricitye