Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
Announcement
CLP has placed on its website certain information relating to its Hong Kong electricity business which has been provided to the Panel on Economic Development of the Legislative Council of Hong Kong.
Today, CLP Power Hong Kong Limited (CLP Power), a wholly-owned subsidiary of CLP Holdings Limited (the Company) has provided certain information relating to its Hong Kong electricity business to the Panel on Economic Development of the Legislative Council of Hong Kong (the Panel). This information was provided at the request of the HKSAR Government.
Certain elements of this information were confidential and commercially sensitive, and were expressly identified as such. The information was provided by CLP Power to the Panel subject to arrangements intended to maintain the confidentiality of this information.
Amongst other items, information relating to CLP Power's estimated capital expenditure during
2013 and the 2014 Development Plan budget as well as the estimated tariffs during the 2014
Development Plan period (from 1 January 2014 to 30 September 2018) has been requested on a non-confidential basis to assist the Panel in their understanding of the 2014 Tariff Review and the 2014 Development Plan. However, prior to the announcement scheduled in February 2014 of the Company's financial results for the year ended 31 December 2013, CLP Power's estimated capital expenditure during 2013 had not yet been publicly disclosed. Furthermore, the 2014
Development Plan budget and the estimated tariffs during the 2014 Development Plan period, which had not been publicly disclosed, would have implications to the financial performance of the Company during the Development Plan period.
1
In the circumstances, the Company has decided that, in accordance with its commitment to the principle of fair disclosure of information relating to its activities, the information provided by CLP Power to the Panel relating to the estimated capital expenditure during 2013 and the 2014
Development Plan budget as well as the estimated tariffs during the 2014 Development Plan period should be made publicly available. Accordingly, the information has now been placed on CLP Power's website. For details, please refer to the attached document.
Investors are advised to exercise caution in dealing in the shares of CLP Holdings.
This announcement is made by CLP Holdings pursuant to Rule 13.09 (2) (a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap.
571, Laws of Hong Kong).
By Order of the Board
April Chan
Company Secretary
Hong Kong, 10 December 2013
The Directors of CLP Holdings as at the date of this announcement are:
Non-executive Directors: The Hon. Sir Michael Kadoorie, Mr. William Mocatta, Mr. R. J. McAulay, Mr. J. A. H. Leigh, Mr. I. D. Boyce, Dr. Y. B. Lee and Mr. Paul A. Theys(Mr. David Moore as Mr. Theys' alternate)
Independent Non-executive Directors: Mr. V. F. Moore, Professor Judy Tsui, Sir Rod Eddington, Mr. Nicholas C. Allen, Mr. Vincent Cheng,Mrs. Fanny Law, Ms. Irene Lee and Dr. Rajiv Lall
Executive Directors: Mr. Richard Lancaster and Mr. Andrew Brandler2
Provision of information by CLP Power Hong Kong Limited in response to the request of the HKSAR Government
10 December 2013
Estimated Capital Expenditure during 2013 and the 2014 Development Plan BudgetCategories (HK$ million) | 20131 | 2014 Development Plan2 | |
(A) Power Generation System | |||
Emission Reduction Project | 186 | 0 | |
Other generation related projects | 968 | 10,703 | |
Sub-total | 1,154 | 10,703 | |
(B) Transmission & Distribution System | 5,459 | 22,562 | |
(C) Customer and Corporate Services Development | 171 | 836 | |
Total (A + B + C) | 6,784 | 34,101 | |
(D) MOU3 related projects on top of the approved total capital expenditure under the 5-year Development Plan | 696 | 0 | |
Grand Total | 7,480 | 34,101 |
Notes:
1. The figures are forecast subject to final audit.
2. This is the budget, covering January 2014 - September 2018, as approved under the 2014 Development Plan by the HKSAR Government.
3. Memorandum of Understanding signed on 28 August 2008 between the National Energy Administration and the HKSAR Government on energy cooperation.
Estimated Tariffs during the 2014 Development Plan (DP) Period2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |
Tariff Component (HK cents/ kWh) | Actual Tariff | DP Forecast/ Annual Tariff Review1 | DP 2 Forecast | DP 2 Forecast | DP 2 Forecast | DP 2 Forecast |
(A) Basic Tariff | 84.2 | 88.4 | 87.2 | 88.4 | 90.0 | 92.1 |
(B) Fuel Clause Charge3 | 22.4 | 22.4 | 36.7 | 45.3 | 52.6 | 56.4 |
(C) Net Tariff3 | 106.64 | 110.8 | 123.9 | 133.7 | 142.6 | 148.5 |
Tariff Stabilisation Fund5 (HK$ million) | 8 | 313 | 391 | 338 | 382 | 380 |
Fuel Clause Recovery Account5 (HK$ million) | 1,264 | 1,420 | -1,499 | -991 | -574 | 3 |
Notes:
1. DP approval and 2014 Tariff Review were done at the same time.
2. The tariff rates for 2015-2018 are only projections and the actual tariffs to be charged to consumers each year
will be determined in the preceding year, following discussions between Government and CLP during the annual
Tariff Reviews, taking into account any variations in the components of the Development Plan & fuel costs.
3. These numbers are current projections, dependent on fuel costs which are likely to vary significantly in the future and so are therefore subject to change.
4. The Rent & Rates Special Rebate ceased on 16 October 2013 as the interim refunds received from Government in relation to CLP's claim against Government's overcharged rents & rates have been rebated; so at 2013 year
end, the Net Tariff is 106.6 HK cents.
5. These are the projected year-end balances of the Fuel Clause Recovery Account and the Tariff Stabilisation
Fund.
3
distributed by |