BBSE2001 Utility

y Services
http://www.hku.hk/bse/bbse2001/

L.V. Electrical System

- Electricity Market and Tariffs
Dr. Sam C M Hui
Department of Mechanical Engineering
The University of Hong Kong
E-mail:
E
mail: cmhui@hku.hk
cmhui@hku hk
Sep 2010

Contents
Legal Framework
Electricity Market
Electricity Tariffs

Legal Framework
Typical
yp
legal
g system
y
in Hong
g Kong
g (statutory)
(
y)
Ordinance (Laws of Hong Kong)
Regulations
Code of Practice

Supporting documents (non-statutory)

Technical Guidelines
Technical Notes or Technical Memoranda
Circular letters
Reference standards (usually from other countries)
Rules (from utilities companies)

Legal Framework
Electricity Ordinance & subsidiary regulations
Electricity Ordinance (Cap. 406) *

Electricity (Exemption) Regulations

Electricity (Registration) Regulations
Electricity Supply Regulations
Most important
Electricity (Wiring) Regulations
Electricity Supply (Special Areas) Regulations
El t i l Products
Electrical
P d t (Safety)
(S f t ) Regulation
R l ti
Electricity Supply Lines (Protection) Regulation

(* can be read from the website www.justice.gov.hk)

Legal Framework
Relevant codes and g
guides to statutoryy regulations
g
Code of Practice for the Electricity (Wring) Regulations
Code of Practice for Minimum Fire Services Installations
and Equipments

Non-statutory
N
regulations/standards
l i /
d d
IEE Regulations for Electrical Installation, 15th edition
and/or 16th edition *
Supply
pp y Rules ((from ppower companies)
p
)
British Standards Specifications & Codes of Practice or
other
ot
e equ
equivalent
va e t national
at o a sta
standards
da ds aand
d pub
publications
cat o s
(* IEE = Institution of Electrical Engineers, now IET)

Legal Framework
Electrical Contractors and Workers
Registered Electrical Contractors (REC)
Registered Electrical Workers (REW)

Grade A Electrical Work ( 400 A)

Grade B Electrical Work ( 2500 A)
Grade C Electrical Work (any capacity)
Grade H Electrical Work (high voltage)
Grade R Electrical Work (special, e.g. neon sign)
NS: neon light; WH = water heaters; AC = air-conditioners

In 2006, about 8,500 REC and 68,000 REW

Legal Framework
Registered Electrical Workers (REW)
Permitted work: code

0 = any categories
1 = only issue design certificate
2 = only perform installation & repair works
3 = only perform repair works

Example:
B0 means REW grade B ( 2500 A) who can design,
install and repair electrical works

Legal Framework
Certification ((new work,, alteration or addition))
Completion of an installation
Certification on the design
Certification on the installation

Work
W k completion
l i certificates
ifi
Form WR1 a complete installation
Form WR1(A) Part of an installation (e.g. for a repair)

Periodic test certificates

Form WR2 a complete installation
(e g for a repair)
Form WR2(A) Part of an installation (e.g.

Electricity Market
Power companies in Hong Kong
CLP Power
http://www.clpgroup.com/

Hongkong
g
g Electric Co.,, Ltd. (HEC)
(
)
http://www.hec.com.hk/

Both
B h are investor-owned,
i
d publicly
bli l listed
li d
Do you have a share? ;;-))

Government monitors through the Scheme of

Control Agreements (SCA)

Demarcation of electricity supply systems between CLP and HEC

Electricity Market
Supply voltage and frequency
Alternating current (A.C.) system at 50 Hz
Single phase: 220 volts
Three phase: 220/380 volts (3 phase 4 wire)
Three phase high voltage: 11 kV, 132 kV

Limits of fluctuation
Voltage:
220 volts
l andd 220/380
/
volts:
l plus
l or minus
i
6%
11 kV and 132 kV: plus 10% or minus 2.5%

Frequency: 50
0 Hz plus
l or minus
i
2%

Electricity Market
Electricityy supply
pp y process
p

Fuels imported from overseas

G
Generation
ti power generation
ti att power plants
l t
Transmission through high voltage lines
Distribution consumer supply (lower voltage)

CLPs
CLP s transmission system is also connected
to Guangdong (export and import of electricity)
Export to some Shenzhen industrial areas
Import
p from Nuclear Power Station at Daya
y Bayy
and pumped Storage Power Station at Conghua

CLPs power stations:

- Black
Bl k Point
P i t (2,500
(2 500 MW)
- Castle Peak (4,108 MW)
- Pennys
P
B
Bay (300 MW)

380V/220V

380V/220V

HEC s power station:

HECs
- Lamma Island (3,756 MW)

Hongkong Electric Co., Ltd.

(Source: http://www.hec.com.hk/)

CLP Power Generation & Transmission Network

(Source: http://www.chinalightandpower.com.hk/)

Electricity Market
Interconnections
Between CLP Power and HEC
Cross-harbour link (at present, capacity 720 MVA)

Between CLP Power and Guangdong

g g

8 x 132 kV lines + 4 x 500 kV/400 kV interbus

Total capacity of over 3,000
3 000 MVA
Daya Bay nuclear power plant
Pumped storage power station in Conghua

(Source: http://www.chinalightandpower.com.hk/)

Review Questions
What are the fuels used by CLP Power & HEC
for generating electricity? How their use will
affect
ff our society?
i ?
What are the benefits of interconnection?
What are the major implications of South
China interconnection network?

Electricity Tariffs
Electricity tariffs = costing systems that a
power company follows to bill the consumers
Basic terms
Maximum demand (in kVA or kW)
Max. load requirements of the system attained over a
specified
ifi d interval
i t
l (e.g.
(
15 min,
i 30 min.,
i 60 min.)
i )

Average demand (in kW)

Power consumed (kWh) during a period (day, month,
yyear)) and then averaged
g byy the duration

Typical load profile for an office building

Max.

Average

Min.

Electricity Tariffs
Basic terms (cont
(contd)
d)
Load factor = ratio of average demand to the max.
d
demand
d during
d i a period
i d
Example: A household has a max. demand of 2 kW on
a typical day. During the 24-hour period, the energy
consumed is 12 kWh, calculate the load factor.
Average demand = 12 kWh/24 hour = 0.5 kW
Therefore, load factor = 0.5 / 2 = 0.25

Typical load factors: Office = 0.35; Hospital = 0.7;

D
Domestic
ti = 0.3;
0 3 Airport
Ai
t = 0.7;
0 7 Playground
Pl
d = 0.25
0 25

Electricity Tariffs
Basic terms (cont
(contd)
d)
Diversity/Demand factor
Ratio of the max. demand of the combined loads of the
whole system to the sum of the individual max.
demands of various subdivisions of the system (total
connected load)

Off-peak and on-peak periods

Off-peak:
Off peak: 09:00pm to 09:00am + all day Sundays &
public holidays
On-peak: all other hours

Electricity Tariffs
Elements of electricityy tariffs
Basic tariff or charge
Demand charge ($/kVA)
Energy charge (cents/kWh)

Fuel
F l clause
l
rebate
b or charge
h
Actual cost of fuel less or more than $700 per 44
gigajoules
i j l shall
h ll be
b credited
di d or debited
d bi d

Scheme of Control rebate

Other charges/rebates
Such as special rebate & business relief rebate

Electricity Tariffs
Types of electricity tariffs (HEC):
Domestic tariff *
Commercial, industrial & miscellaneous tariff
Maximum demand tariff

* Concessionary tariff for the elderly/disabled/single-parent

elderly/disabled/single parent
families/unemployed (60% discount for the first 200 units of
electricityy consumed in a month pplus the exemption
p
of the
payment of deposit and minimum charge)

HEC Domestic Tariff

Consumption
p
(In
( Blocks))
(1 unit = 1 kWh)

Basic Charge
g
(cents/unit)

FCA
(cents/unit)

Net Rate
(cents/unit)

63.0

25.4

88.4

150 units (151 - 300)

73.0

25.4

98.4

200 units (301 - 500)

82.8

25.4

108.2

200 units
i (501 - 700)

106 2
106.2

25 4
25.4

131 6
131.6

300 units (701 - 1,000)

115.5

25.4

140.9

125.0

25.4

150.4

For each of the first 150 units

For each of the next

From 1,001 units and above

* For connection to supply in a month with no consumption or any consumption up to 20 units, the
Minimum Charge will be $17.66. A Rate Reduction Reserve (RRR) Rebate of 0.1 cents per unit will
be provided to the customer to refund the interest on the Tariff Stabilisation Fund.

Effective: 1 January 2010

FCA = Fuel Clause Adjustment

HEC Commercial, Industrial & Miscellaneous Tariff

Consumption (In Blocks)
(1 unit
it = 1 kWh)

Basic Charge
( t / it)
(cents/unit)

FCA
( t / it)
(cents/unit)

Net Rate
( t / it)
(cents/unit)

For each of the first 1,500 units

95.3

25.4

120.7

From 1,501 units and above

104.6

25.4

130.0

* For connection to supply in a month with no consumption or any consumption up to 30 units, the
Minimum Charge will be $36.21. A Rate Reduction Reserve (RRR) Rebate of 0.1 cents per unit will
be provided to the customer to refund the interest on the Tariff Stabilisation Fund.

Effective: 1 January 2010

FCA = Fuel Clause Adjustment

HEC Maximum Demand Tariff (Commercial & Industrial )

Demand Charge ($/kVA in the month):

Low Voltage

High Voltage

For each of the first 400kVA of maximum

demand in the month

43 1
43.1

42 1
42.1

For each of the next additional kVA of

maximum demand in the month

42.1

41.1

Energy Ch
E
Charge (Monthly
(M thl
consumption) (1 unit = 1 kWh)

Basic
B
i Charge
Ch
(cents/unit)

FCA
(cents/unit)

Nett Rate
N
R t
(cents/unit)

Low Voltage:
L
V lt
first
fi t 200 units
it per
month per kVA of max. demand

87 7
87.7

25 4
25.4

113 1
113.1

Low Voltage: each additional unit

81 9
81.9

25 4
25.4

107 3
107.3

High Voltage: first 200 units per

month per kVA of max. demand

87.1

25.4

112.5

High Voltage: each additional unit

81.3

25.4

106.7

Effective: 1 January 2010

FCA = Fuel Clause Adjustment

Example Calculation: HEC Maximum Demand Tariff

A commercial building with a low voltage power supply from
HEC has these demand/consumption in a month. Calculate the
electricity charge.
- Maximum demand = 800 kVA
- Consumption
C
i = 200,000
200 000 kWh
k h
Demand charge
g
Basic charge
g
j
Fuel adjustment
Total amount =

400 kVA x $$43.1

400 kVA x $42.1

$34 080
$34,080

((200 units x 800 kVA/unit)) x $$0.877

40,000 kWh x $0.819

$
$173,080

25.4 cents/kWh x 200,000

,
kWh

$$50,800
,
$257,960

If the maximum demand is reduced to 600 kVA,

kVA what will be the
total amount of electricity charge?
(Ans.: $214,460)

Electricity Tariffs
Types of electricity tariffs (CLP):

Domestic tariff * (on bimonthly meter-readings)

General service tariff (not solely for domestic)
Bulk tariff (consumption > 20,000
20 000 kWh)
Large power tariff (demand > 3,000 kVA)
Ice-storage air-conditioning tariff (charges similar
to bulk tariff))

* Concessionary tariff for the elderly (half-price for the first 400
units of electricity consumed in two months plus an exemption of
minimum charge); Domestic night storage water heater rate (2300
hr to 0700 hr, about 40% discount on basic charge)

B i charge:Basic
h
(bi
(bimonthly)
thl )

CLP Domestic Tariff

Total bimonthly consumption

(1 unit
it = 1 kWh)

Rate
( t / it)
(cents/unit)

Each of the first 400 units

78.2

Each of the next 600 units

84.8

Each of the next 800 units

90.8

Each unit over 1800

98 7
98.7

Fuel clause charge = 11.5

11 5 cents/unit
The amount by which the actual cost of fuel is less or more than $700 per 44 gigajoules shall be
credited or debited to the Fuel Clause Recovery Account.

Total charge = Basic charge + Fuel clause charge

Minimum charge per bill: HK$31
Effective: 1 January 2010

CLP General Service Tariff

B i charge:Basic
h
(
(monthly)
thl )

Total monthly consumption

(1 unit
it = 1 kWh)

Rate
( t / it)
(cents/unit)

Each of the first 5,000 units

88.7

Each unit over 5,000

87.8

Fuel clause charge = 11.5 cents/unit

The amount by which the actual cost of fuel is less or more than $700 per 44 gigajoules shall be
credited or debited to the Fuel Clause Recovery Account.

Total charge = Basic charge + Fuel clause charge

Minimum charge per bill: HK$30.00
HK$30 00

Effective: 1 January 2010

CLP Bulk Tariff (consumption > 20,000 kWh) (Effective: 1 January 2010)
Demand Charge:On-peak period: (* min. on-peak billing demand: 100 kVA)
Each of the first 650 kVA
Each kVA above 650

$61.9
$59.1

Off-peak period: (9pm-9am + Sundays & public holidays)

Each off-peak kVA up to the on-peak billing demand
Each off-peak kVA in excess of the on-peak billing demand

$0.0
$24.2

Energy Charge (total monthly consumption)

(1 unit = 1 kWh)

Rate
(
(cents/unit)
)

On-peak period:
,
units
Each of the first 200,000
Each unit over 200,000

63.2
61.8

Off-peak
p
pperiod:
Each unit

56.2

Fuel clause charge

g = 11.5 cents/unit
Total charge = Demand charge + Energy charge + Fuel clause charge

CLP Large Power Tariff (demand > 3,000 kVA) (Effective: 1 January 2010)
Demand Charge:On-peak
p
pperiod:
Each of the first 5,000 kVA
Each kVA above 5,000

$108.8
$104.2

(Minimum on-peak billing demand: 50% of the highest on-peak

billing demand under Large Power Tariff during the "Summer
Months" of the immediately preceding 12 months.)
Months
months )

Off-peak period: (9pm-9am + Sundays & public holidays)

Each off-peak kVA up to the on-peak billing demand
Each off-peak kVA in excess of the on-peak billing demand

$0.0
$0
0
$30.7

Billing demand shortfall:

(There is no charge if on-peak billing demand or off-peak billing
demand is not less than 3,000 kVA. The shortfall will be based on the
difference between 3,000 kVA and the higher of on-peak billing
demand and off-peak billing demand.)

Each kVA short of 3,000

3 000 kVA

$$108.8
08.8

CLP Large Power Tariff (contd)

Energy Charge (total monthly consumption)
(1 unit = 1 kWh)
On-peak period:
Each of the first 200 units per kVA of onpeak billing demand
Each unit in excess of above
Off-peak period:
Each unit

Rate
(cents/unit)
47.8
46.0
39.0

Fuel clause charge = 11.5 cents/unit

Total charge = Demand charge + Energy charge + Fuel clause charge

CLP Large Power Tariff (contd)

High Voltage Super Demand Rider (HVSDR): (discount price)
(i) the on-peak demand or off-peak demand, whichever is higher, is
not less than 35,000 kVA; and
(ii) supplied at 33kV and above and/or through a dedicated supply
from CLP 132kV p
primaryy substation.
High
g Load Factor Rider (HLFR):
(
)
(a) average monthly total consumption per kVA of average monthly
"Maximum Billing Demand"in the preceding 12 months is higher
than 500 units per kVA
(b) HLFR provides lower charges for energy consumption over 500
units per kVA of "Maximum Billing Demand" in the month
(c) Reduction in the energy charges:
Each of the 501st unit to 600th unit per kVA of "Maximum
Billing Demand: 4.5 cents per unit
Each
E h unit
i over 600 units
i per kVA off "M
"Maximum
i
Billi
Billing
Demand: 9.0 cents per unit

CLP Charges under High Voltage Super Demand Rider (HVSDR)

Demand Charge:On-peak period: (* min. on-peak billing demand: 100 kVA)
Each of the first 5,000 kVA
Each kVA above 5,000

$100.4
$95.8

Off-peak period: (9pm-9am + Sundays & public holidays)

Each off-peak kVA up to the on-peak billing demand
Each off-peak kVA in excess of the on-peak billing demand

$0.0
$28.8

(Minimum on-peak billing demand: 50% of the highest on-peak billing demand under Large Power Tariff
during the "Summer Months" of the immediately preceding 12 months.)

Energy Charge (total monthly consumption) (1 unit = 1 kWh)

Rate (cents/unit)

On-peak
p
pperiod:
Each of the first 200 units per kVA of on-peak billing demand
Each unit in excess of above

46.0
44.1

Off-peak period:
Each unit

37.1

Fuel clause charge = 11.5 cents/unit

Total charge = Demand charge + Energy charge + Fuel clause charge

References
Chan, S.
S F
F.,, 2010.
2010 A Practical Guide to
Electrical Installation 2011, Wan Li Book Co.,
L d Hong
Ltd.,
H
K
Kong. (i
(in Chi
Chinese))
EMSD,
EMSD 2009
2009. Code of Practice for the
Electricity (Wiring) Regulations, Electrical &
Mechanical Services Department (EMSD),
2009 Edition, the Government of the Hong
Kong Special Administrative Region, Hong
K
Kong.
[HK 621
621.31924
31924 H77]

(Available from www.emsd.gov.hk)

Websites
EMSDs Electricityy Legislation
g
Division
www.emsd.gov.hk/emsd/eng/pps/electricity.shtml

CLP Power
P
((www.clpgroup.com)
l
)
Supply
pp y Rules
Tariffs

Hongkong
H
k
Ele
Electric
t i (www.hec.com.hk)
(
he
hk)
Guide to Connection of Supply
Supply Rules
Tariffs

Homework Exercise
Electrical demands at your home
Assess the electrical appliances/equipment
Estimate the load requirements per floor area and
pper person
p

Electricity consumption at your home

Collect info about the electricity consumption in
( y, for one year)
y )
the ppast (say,
Estimate the use per floor area and per person
Assess the
h consumption
i patterns & characteristics
h
i i