Civic Exchange’s Written Submission to the Environment Bureau regarding Public Consultation on the Future Development of the Electricity Market

In March 2015, the Environment Bureau of the Hong Kong Special Administrative Region Government (the Government) launched a document entitled Public Consultation on the Future Development of the Electricity Market (the Consultation Document). This is the second consultation paper in as many years related to energy issues in Hong Kong, which mainly provides a review of readiness of introducing competition to local electricity market, and proposes several options to improve the regulatory arrangement, in light of the four energy policy objectives of safety, reliability, affordability and environmental performance. The consultation lasts for three months until 30 June 2015.

Civic Exchange acknowledges the Government’s openness in consulting the public and other key stakeholders on future electricity market development, as any changes in future market structure and/or regulatory regime would possibly bring profound impact on electricity demand and supply, as well as on how Hong Kong as a city could achieve our energy policy objectives and meet our performance targets.

On 14 May 2015, the Government published the Energy Saving Plan for Hong Kong’s Built Environment 2015~2025 (the Plan). While the Plan does not form part of the consultation on future electricity market development, future successful implementation and achievement of some of the strategies and targets outlined in the Plan would to some extent hinge on improvement to the next Scheme of Control Agreement (SCA). As such, this submission will also touch on the subject of energy conservation in connection with future regulatory arrangement.