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CLP Holdings (00002.HK): Geopolitical Risks Sound Alarm on Fuel Issues; Company Has Ample Fuel Reserves and Power Generation Plans
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Michael Kadoorie, Chairman of CLP Holdings (00002.HK), stated in a media interview that geopolitical risks have sounded an alarm on fuel issues, with the current energy supply at a 'yellow light' warning level. However, he emphasized that CLP has ample fuel reserves and power generation plans, ensuring stable power supply, describing it as 'the lights will still be on tomorrow.' He mentioned that CLP adopts a diversified strategy, sourcing natural gas from different supply chains, thus minimizing the impact of a supply disruption from the Strait of Hormuz. If necessary, CLP can also increase coal-fired power generation and import electricity from the mainland. Regarding the impact on electricity tariffs, Philip Kadoorie, son of Michael Kadoorie and Non-Executive Director of CLP, pointed out that the agreement between CLP and the government includes a buffer mechanism to stabilize prices through a fuel account. According to the Scheme of Control Agreement, the electricity tariff level considers basic tariff and fuel adjustment charges, and also includes a fuel price adjustment clause account and a tariff stabilization fund, which acts like a piggy bank to prepare for unexpected situations. He noted that CLP has already utilized these funds at the beginning of the year to lower the net electricity tariff. Additionally, CLP has been involved in the development of the Northern Metropolis for many years. Michael Kadoorie stated that cooperation with the government has been smooth. Given the seven-year construction cycle for power facilities, CLP has proactively planned in the Northern Metropolis, providing assurance to the government that it can deliver the required electricity on time and in quantity. (sl/da) Auto-translated by third-party software This translation was auto-generated by third-party software. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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