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Reliability and resilience in a regulated electricity market: Hong Kong under Typhoon Mangkhut

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  • Chung, Sum Yue
  • Xu, Yuan

Abstract

Hong Kong has resisted the global trend toward electricity market restructuring and deregulation, and maintains two vertically integrated utility monopolies. However, the regulated market achieves impressive performances with relatively low tariffs, rare electricity disruptions, and quick service restoration following outages. This research examines electricity reliability and resilience in the context of Typhoon Mangkhut in September 2018, with a particular focus on how the regulatory framework of the Scheme of Control Agreement (SCA) shapes planning, operating, and investing decisions. The SCA quantitively establishes financial incentives for utilities to achieve high-quality service and guard against potential political influence on utility decision-making.

Suggested Citation

  • Chung, Sum Yue & Xu, Yuan, 2020. "Reliability and resilience in a regulated electricity market: Hong Kong under Typhoon Mangkhut," Utilities Policy, Elsevier, vol. 67(C).
    • Handle: RePEc:eee:juipol:v:67:y:2020:i:c:s0957178720301284
    DOI: 10.1016/j.jup.2020.101134
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    References listed on IDEAS

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