The Scheme of Control Agreement 2018 (SCA 2018) is a regulatory framework designed by the Hong Kong government to control and regulate electricity supply in Hong Kong. The agreement, which came into effect in April 2018, was signed between the Hong Kong Special Administrative Region (HKSAR) Government and the two electricity supply companies – CLP Power Hong Kong Limited and Hong Kong Electric Company Limited.

The SCA 2018 is a continuation of the Scheme of Control Agreement (SCA) implemented in 1993. The SCA 2018 sets out the terms and conditions under which the two electricity companies operate. The agreement mandates that the electricity companies invest in providing a safe, reliable, and affordable supply of electricity to customers while also ensuring that they comply with environmental standards.

Under the SCA 2018, the two electricity companies are required to make significant investments in infrastructure and technology to ensure that they can meet the demands of a growing Hong Kong population. Over the next 15 years, both companies are expected to invest a total of HK$100 billion in projects such as building new power plants, upgrading transmission and distribution systems, and investing in renewable energy sources.

One of the key objectives of the SCA 2018 is to promote energy efficiency and the use of renewable energy sources. The agreement sets out targets for the two electricity companies to increase the percentage of electricity generated from renewable sources from 1% to 3.3% by 2025 and to 10% by 2030. Furthermore, the agreement requires the electricity companies to offer incentives to customers who adopt energy-efficient measures.

The SCA 2018 also sets out strict regulations on tariffs and prices charged by the electricity companies. The agreement mandates that the electricity companies must obtain approval from the government before adjusting tariffs, and any adjustments must be reasonable and justified.

Overall, the Scheme of Control Agreement 2018 is an important milestone for the electricity supply industry in Hong Kong. The agreement ensures that the two electricity companies continue to operate in a manner that promotes safety, reliability, and affordability, while also promoting energy efficiency and the use of renewable energy sources. By providing a stable regulatory framework, the SCA 2018 gives customers and investors confidence in the electricity supply system in Hong Kong.