MTRs Will towards Market

Reform
Law Choi Yee (11127904)
MTRs energy management
Energy and utilities are the largest non-salary expenses related
to our Hong Kong operations
Primary carbon management activities energy optimisation
Supply of electricity and related GHG emissions are
under regulatory control
Two suppliers(CLP, HEC) do not presently offer customers with
choices for renewable energy.
MTR enjoys the same price of electricity provided by CLP and
HEC by agreements.


(Source: MTR Sustainability report 2011)
MTRs energy management
The largest non-salary expenses : Energy and utilities
Electricity consumption of railway operation increases






(Source: MTR Sustainability report 2011)

Benefits of market reform to MTR
In market reform, competition in the supply of electricity can be
introduced to Hong Kong with participation of multiple suppliers (CLP, HEC
and electricity suppliers in Southern China).
Allow consumers a choice of electricity suppliers
Effective means to force tariffs down
Short term: inter-connector between CLP and HEC should be upgraded so that
consumers on either the Kowloon or Hong Kong Island side could be offered a
choice of electricity providers.
Mid-term: local electricity market could be opened up to new entrants (electricity
supply from the Mainland) to further expand the choice of consumers.
Renewable energy sources and co-generation will be given a much easier
access.
More investment on renewable energy sources

(Source: Study of Interconnection and Competition in the Electricity Supply Sector in Hong Kong, Restructuring Hong
Kongs Post-2008 Electricity Market: A Proposal by the Federation of Hong Kong Industries )
Benefits of market reform to MTR
Lower prices result from competition
A downward pressure on the profit margins of generators and
suppliers
An incentive to reduce costs
Lower electricity prices

Development of new energy services
No need to provide regulatory incentives to promote efficiency
Better investment in the electricity supply industry

(Source: Ocana, C. (2001). Competition in electricity markets. : OECD/IEA)
MTRs Will toward market reform
MTR can be benefited from market reform
(open market and competition).
Operation cost will reduce.
Energy efficiencies can be increased.
Can use renewable energy sources to achieve
the carbon reduction target
Reference
MTR Sustainability report 2011
http://www.mtr.com.hk/eng/sustainability/2011rpt/clim-ener.php
Study of Interconnection and Competition in the Electricity Supply
Sector in Hong Kong
http://www.enb.gov.hk/en/resources_publications/consultancy_stu
dies/C7.html
Restructuring Hong Kongs Post-2008 Electricity Market: A Proposal
by the Federation of Hong Kong Industries
http://www.industryhk.org/english/news/news_sp/files/Electricity
_Report.pdf
Ocana, C. (2001). Competition in electricity markets. : OECD/IEA