Scheme of Control

Hong Kong’s electricity sector is privately-owned and operated. The Hong Kong Government monitors the performance of the power companies through the Scheme of Control (SoC) Agreement. This agreement: 

• Defines each power company’s role as an electricity provider; and
• Provides a regulatory framework for the government to monitor its operating performance and financial affairs.

Under the SoC Agreement, power companies have an obligation to supply sufficient and reliable electricity to their service areas. Customers obtain quality electricity supply that is sustainable and affordable, while power companies earn a return which is reasonable in relation to the capital invested. 

The first SoC Agreement was signed in 1964 and was renewed in 1978, 1993 and 2008. The current SoC agreement came into effect on 1 October 2018.