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Following is a question by the Hon Tang Ka-piu and a written reply by the Secretary for the Environment, Mr Wong Kam-sing, in the Legislative Council today (January 23):
Question:
Regarding the electricity expenditure of government departments and public organizations, the Government's subsidies on electricity expenditure for specific industries, and electricity tariffs currently charged by the two power companies in Hong Kong (the two power companies), will the Government inform this Council:
(a) of the trends on electricity consumption and expenditure of various government bureaux and departments in the past five years, and the 10 bureaux/departments with the highest electricity expenditure;
(b) whether it knows the trends on electricity consumption and expenditure of various statutory bodies in the past five years; if so, of the details; if not, the reasons for that;
(c) whether it has assessed the differences in electricity expenditure of government offices located in different districts arising from the difference in electricity tariffs charged by the two power companies, and whether the Government has set appropriate energy saving targets for offices in different districts in the light of such differences in expenditure; if it has, of the details, including the number of offices meeting such targets; if not, the reasons for that;
(d) whether it knows the electricity expenditure of those 24-hour data centres set up in government departments and public organizations in the past five years;
(e) whether the Government will consider providing subsidies on electricity expenditure for the data centres of the "six industries where Hong Kong enjoys clear advantages" mentioned in the 2009-2010 Policy Address (i.e. education services, medical services, testing and certification, environmental industries, innovation and technology, and cultural and creative industries) so as to promote the development of such industries; if it will, of the details; if not, the reasons for that; whether the authorities have estimated the impact of developing such data centres on the growth of electricity consumption in future; and
(f) as there are comments that the regressive structures of electricity tariffs (i.e. lower rates for higher consumption) applied by the two power companies on customers of high electricity consumption have become an incentive for such customers to consume more electricity, whether it knows the details of the regressive rates of electricity tariffs offered by the two power companies to customers of high electricity consumption in the past five years; whether the authorities will require the two power companies to apply a standard progressive tariff structure on domestic customers, commercial customers with lower electricity consumption as well as commercial customers with high electricity consumption when the authorities conduct the interim review of the Scheme of Control Agreements with the two power companies this year; if they will, of the details; if not, the reasons for that?
Reply:
President,
(a) The Administration's overall electricity consumption and its electricity expenses as recorded in the departmental expenses of bureaux and departments in the past five years are as follows -
Financial Year Electricity Electricity
consumption (kWh) Expenses ($)
2007-08 2,551 million 2,105 million
2008-09 2,537 million 2,166 million
2009-10 2,568 million 2,156 million
2010-11 2,549 million 2,168 million
2011-12 2,598 million 2,296 million
The electricity consumption of departments is affected by a number of factors including the scope of work, service nature and service hours, and hence should not be compared directly.
(b) Statutory bodies are not Government departments and we do not have data about their electricity consumption.
(c) In identifying premises for Government departments, due consideration will be given to operational needs, the costs/rents and location of the property, as well as timing, etc.
In 2009, the Government set the energy-saving target of achieving a 5% saving in the total electricity consumption in Government buildings from 2009-10 to 2013-14 after discounting activity changes. Our latest figures show that in 2011-2012, the saving in electricity consumption in Government buildings after discounting activity changes (using the electricity consumption in 2007-08 as the baseline) reached 7.9% which exceeded the original target.
(d) Government data centres are located in the offices of relevant departments or Government properties, and their electricity expenses have been incorporated in the overall electricity expenditure of those offices or Government properties. There is no further breakdown.
(e) To reduce energy consumption and carbon emission, the Government has been promoting energy conservation, enhancing energy efficiency and disseminating good practices. Having consulted the Office of the Government Chief Information Officer (OGCIO), we understand that the data centre industry has also been actively implementing various energy-saving initiatives. For instance, to reduce carbon emission and operating costs, green and energy-saving measures in the construction and operation of newly-upgraded or soon to be completed data centres have been implemented, and air flow / ventilation and chiller systems have also been optimised.
According to OGCIO, the operation of data centre is not subject to Government approval, and electricity consumption of data centres is commercial information kept by the power companies and the centres. The Government does not have data about the level of and the growth in the electricity consumption of the data centres serving "the Six Industries", and has no plan to subsidise electricity expenses of the relevant data centres.
(f) According to our understanding, the two power companies have been determining the electricity charges based on the costs of electricity supply in serving different groups of customers, and avoid cross-subsidisation among different groups of customers (i.e. domestic customers, small and medium enterprise customers, and non-domestic customers with high consumption).
The electricity tariff tables of the two power companies for commercial customers with high electricity consumption (i.e. "Bulk Tariff" and "Large Power Tariff" customers for CLP and "Maximum Demand Tariff" customers for HKE) in the past five years are set out in Annexes A and B.
The Scheme of Control Agreements (SCAs) stipulate clearly that the two power companies and the Government shall have the right during 2013 to request modification of any part of the current SCAs, and mutual agreement is needed before implementing any proposed modification. The Government will carry out a mid-term review of the SCAs with the two power companies respectively in 2013 in accordance with the SCAs.
There are certain difficulties in the implementation of the progressive tariff structure for commercial and industrial customers with high electricity consumption. It is because these customers involve different sectors (e.g. mass transportation systems, hospitals, universities, industries, etc.). They are facing different operational circumstances and have different opinions on changing the current electricity tariff structures. Therefore, we must consider thoroughly any proposed changes to the tariff structures for customers with high consumption and listen to the views of all sectors of the community widely.
The Government has no fixed views on the mid-term review of SCAs. We will collect and study the views from various parties and continue to perform the gate-keeping duties with our best endeavour to ensure a right balance among the objectives of electricity supply in Hong Kong, i.e. reliability, safety, environmental-friendliness and reasonable prices, in order to safeguard the interests of the public.
Ends/Wednesday, January 23, 2013
Issued at HKT 15:56
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