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Case
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Reference no. 205-063-1
Subject category: Economics, Politics and Business Environment
Authors: Pun Lee Lam (HKU Business School, The University of Hong Kong); Carola Ramon Berjano (HKU Business School, The University of Hong Kong); Ka-Fu Wong (HKU Business School, The University of Hong Kong); Alexandra Yiu (HKU Business School, The University of Hong Kong)
Published by: Asia Case Research Centre, The University of Hong Kong
Published in: 2005
Length: 7 pages
Data source: Field research
Topics: Regulation in the power market; Performance
Share a link: https://casecent.re/p/63439
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Abstract

This case investigates the role of Scheme of Control (SoC) in governing the return of power companies in Hong Kong. In 2002, faced with contractual agreements with the two power companies (China Light & Power and Hongkong Electric) and with a strong public demand for measures to ease economic pain, the government was caught in the middle on whether to allow the power firms to raise tariffs. Rent-seeking behaviour of various interest groups is highlighted. Effects of SoC on the performance of the two power firms are identified. The findings provide a factual base for discussions in government policy and business strategy.
Location:
Hong Kong
Other setting(s):
1950s to 2003
Teaching note
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Reference no. 205-063-8
Subject category: Economics, Politics and Business Environment
Authors: Pun Lee Lam (HKU Business School, The University of Hong Kong); Carola Ramon Berjano (HKU Business School, The University of Hong Kong); Ka-Fu Wong (HKU Business School, The University of Hong Kong); Alexandra Yiu (HKU Business School, The University of Hong Kong)
Published by: Asia Case Research Centre, The University of Hong Kong
Published in: 2005
Length: 7 pages
Data source: Field research
View full details

About

Abstract

This case investigates the role of Scheme of Control (SoC) in governing the return of power companies in Hong Kong. In 2002, faced with contractual agreements with the two power companies (China Light & Power and Hongkong Electric) and with a strong public demand for measures to ease economic pain, the government was caught in the middle on whether to allow the power firms to raise tariffs. Rent-seeking behaviour of various interest groups is highlighted. Effects of SoC on the performance of the two power firms are identified. The findings provide a factual base for discussions in government policy and business strategy.

Settings

Location:
Hong Kong
Other setting(s):
1950s to 2003

Related

Teaching note
-
Reference no. 205-063-8
Subject category: Economics, Politics and Business Environment
Authors: Pun Lee Lam (HKU Business School, The University of Hong Kong); Carola Ramon Berjano (HKU Business School, The University of Hong Kong); Ka-Fu Wong (HKU Business School, The University of Hong Kong); Alexandra Yiu (HKU Business School, The University of Hong Kong)
Published by: Asia Case Research Centre, The University of Hong Kong
Published in: 2005
Length: 7 pages
Data source: Field research
View full details