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Rent Seeking Behaviour in the Power Market  
Product Ref: 05/200C Company: N/A

Product Type: Case Industry: Energy

Related Product(s): Teaching Note
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 (CLP and HEC) 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.
Functional Area : Economics & Business Policy

Issues: Regulation in the Power Market, Performance
Length: 21 pages Country: Hong Kong SAR

Pub. Year: 2005 Level of Difficulty: 1
This product type is available in the following language(s):      English
Related Information: N/A
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