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Scheme of Control Agreement and Related Information

Scheme of Control Agreement and Related Information

The Scheme of Control Agreement ("SCA") provides a framework for the Government to monitor HK Electric's financial affairs and operating performance. The current SCA is effective for a term of 10 years from 1 January 2009 and will expire on 31 December 2018. Under the current SCA, HK Electric is entitled to a 9.99% permitted rate of return on average net fixed assets other than for renewable energy fixed assets for which the permitted rate of return is 11%.

In April 2017, HK Electric entered into a new SCA with the Government, effective for 15 years from 1 January 2019 until 31 December 2033. HK Electric is entitled to a permitted rate of return of 8% on average net fixed assets under the new SCA. The agreement provides long-term certainty to HK Electric in gradual replacement of its coal-fired units by gas-fired units. With a strong emphasis on energy efficiency, customer services, promotion of renewable energy and operational transparency, the new SCA effectively balances the interests of various stakeholders.

Scheme of Control Agreement

Development Plan

Tariff Review

Other Information