Customers

SASB reference: IF-EU-000.A; GRI reference: EU3

CLP Power Hong Kong is the sole electricity provider for Kowloon, the New Territories and most of the outlying islands of Hong Kong. It serves close to 2.7 million retail customers and about 80% of Hong Kong’s population. Total electricity sales for 2021 were 35,355 GWh, with all sales coming from Hong Kong customers.

While Hong Kong is perceived by some as a mature market, there is still a growing demand for electricity. This is largely driven by a number of territory-wide development and infrastructure projects, as well as new local railway infrastructure projects that will improve mobility in Hong Kong. In addition, as Hong Kong is targeted as a prime location for data centres, there is a need to ensure highly reliable power supplies to support and facilitate the development of the energy-intensive data centre industry.

EnergyAustralia sells electricity and gas to retail customers in New South Wales, Victoria, South Australia, the Australian Capital Territory and Queensland (electricity only). It is among the 30 or so retailers active in the key markets of New South Wales and Victoria. In 2021, EnergyAustralia’s number of retail customer accounts remained broadly stable after three consecutive years of slight decline.

Across the Group, services are in place that ensure most challenges, including language, culture, literacy, financial situation or disability, do not prevent people from accessing and using the Company’s products and services.

Special arrangements are in place for customers facing financial difficulties to avoid having to disconnect their electricity supply. In Hong Kong, CLP Power offers a Braille bill to assist those who are visually impaired. In Australia, EnergyAustralia provides interpreter services for those with a first language other than English, and also offers hearing-impaired and vision-impaired billing services.

SASB reference: IF-EU-240a.3; GRI reference: EU27

Hong Kong

CLP understands that although the tariff level in Hong Kong is reasonable and competitive, when compared to other major metropolitan cities around the world, it could potentially be a financial burden to vulnerable groups.

During 2021, in supporting residential customers, CLP Power offered a total of HK$26 million in electricity subsidies to around 50,000 households in need through the ongoing CLP Power Connect Programme. It pledged a further HK$50 million for 2022. Under the programme, CLP Power also provided subsidies for the landlords of subdivided units to carry out rewiring works, and install individual electricity meters for tenants of subdivided units, to improve the safety of the units and electricity usage tracking. The programme was launched in January 2019, and at the end of 2021, 34 subdivided units were rewired with 116 individual electricity meters installed.

Australia

EnergyAustralia recognises that all customers need to be able to access its products and services fairly and equally. Through its Energy Charter, EnergyAustralia commits to working together to improve affordability and to support customers experiencing vulnerable circumstances.

2021 was another challenging year for Australian customers due to the COVID-19 pandemic lockdowns and floods on the east coast in March 2021. This saw a significant increase in both residential and business customers experiencing financial difficulties and seeking support, many for the first time in New South Wales. Victorian customers required ongoing support due to being in lockdown for 267 days between March 2020 and October 2021.

In response to the pandemic, from March to December 2021, EnergyAustralia helped residential customers experiencing difficult financial situations by putting in place over 254,000 payment plans and granting more than 237,000 payment extensions.

For customers impacted by long-term financial hardship, assistance is available under the EnergyAssist hardship programme. The programme helps customers by offering tailored payment plans, payment matching and debt waivers, as well as energy efficiency education to ensure that customers are well-informed for making decisions. EnergyAustralia monitors the number of customers on the programme, their debt levels and the number of successful completions. In 2021, 38,827 account holders entered the programme and 9,755 account holders left the programme after successfully completing their payment commitments. This represents a graduation rate of 27%, slightly lower than 33% in 2021.

EnergyAustralia’s business customers were some of the first to access tailored support. Rapid Business Assist, a programme launched in 2020 to support SMEs facing financial uncertainty, continued in 2021. In consultation with customers, specialist EnergyAustralia business advisers customise payment schedules, offer free standard disconnections and reconnections, advise on lowering energy consumption, and provide guidance on government energy relief subsidies.

In 2021, the programme provided more than 16,000 payment extensions and over 2,600 payment plans for business customers. Small business suppliers were moved to 14-day payment terms to support their cash flow.

GRI reference: EU10

Goals and targets

For generation assets, CLP monitors the availability factor in terms of the amount of time that an asset is able to produce full load equivalent electricity over a certain period, divided by the amount of time in that period. Typical values range from 70% to 90%, and CLP aims to maintain an availability range of 90% and above for newer assets.

Targets for each asset are set annually and included in the business plan. Performance is reported on a weekly basis to senior management. Any significant performance variance is analysed and corrective action is taken where appropriate.

Strategies and procedures

While CLP has generation businesses across the Asia-Pacific region, Hong Kong is the only location where the business is vertically integrated. In other words, it provides generation, transmission and distribution of power, as well as retail services. CLP Power Hong Kong is regulated by the Hong Kong Government under a Scheme of Control (SoC) Agreement framework that requires the Company to forecast electricity demand and plan for investment to provide a safe and reliable electricity supply to customers. In Hong Kong, CLP uses various measures to maintain high supply availability and reliability. These measures include:

• Upgrading generation and network facilities to meet new electricity demand;
• Maintaining sufficient generating capacity to meet forecast demand as well as planned and unforeseen outages;
• Presenting an additional and economically viable gas supply option that can offer energy security through access to competitive gas supplies from global markets using Floating Storage and Regasification Unit (FSRU) technology;
• Adopting advanced technology, such as smart grid, and implementing demand-side management measures to reduce demand growth and improve utilisation of existing assets;
• Improving the quality of the power supply to minimise voltage dips; and
• Enhancing power systems to minimise the impact of adverse weather.

Across the Group, CLP promotes organisational learning and the building of technological capacities to ensure availability and reliability. Insights learned from regional experiences are shared amongst functions to plan for a consistent management framework. This practice facilitates better portfolio management and reduces risks to the Group’s operations as a whole.

Transmission network

To cope with the territorial development of Hong Kong, CLP reviews future transmission network developments annually in accordance with: the latest system maximum demand forecast; area load growth; infrastructure development; and generation development.

Annual maintenance and improvement programmes have been developed for major transmission assets based on the analysis of current conditions and performance of the assets, levels of investment and risk.

The power supply network is most exposed to damage from extreme climate events, potentially leading to service disruptions. In response, CLP continues to improve the reliability of its power supply network through a range of measures.

In India, Apraava Energy has adopted the philosophy of predictive and corrective maintenance of its transmission assets. This includes pre-emptive check-ups and assessments on operational clearances, ensuring assets are well structured and maintained with proper setup, hardware and security. Frequent patrolling is carried out for conducting assessments on landscape and assets. The results are used to identify defects and plan for shutdowns if needed.

Apraava Energy has started using a mobile application for the real-time tracking of site patrols to shorten the response time for rectifications, if required. Thermo vision cameras aid the team in reaching the site with defects through heat mapping. The use of drones for site patrolling is under planning, while a ground team will be retained at strategic locations to allow them to attend to damages when required.

With the operations and maintenance strategy in place, Apraava Energy has achieved 100% availability of electricity to customers since its acquisition in November 2019.

SASB reference: IF-EU-550a.2; GRI reference: EU4, EU12, EU26, EU28, EU29, EU30

CLP’s transmission and distribution network in Hong Kong serves about 80% of the population of the city and close to 100% of the population in the Company’s service area. At the end of 2021, CLP Power had approximately 1,140km of overhead and 15,257km of underground circuits at medium or higher voltage. In addition, there were 237 primary and 15,204 secondary substations operating in Hong Kong. As of 2021, the average network loss for the past five years was 3.61%, slightly lower than the five-year average of 3.69% reported in 2020.

To arrive at these percentages, a set of universally recognised supply reliability performance indicators is used from the Institute of Electrical and Electronics Engineers standard (IEEE 1366-2012) to monitor system performance. CLP’s performance against these indicators is reported annually to the Hong Kong Government.

GRI reference: 417-1

Strategy and procedures

CLP customers can access information on products and services in a timely and efficient manner through a number of communication channels, such as a welcome pack for all new customers, information on the CLP Power Hong Kong websites and CLP Mobile App, as well as the EnergyAustralia websites and Mobile Apps.

CLP also strives to effectively respond to customer needs and preferences. All escalated cases are studied thoroughly to appropriately resolve the issues customers have raised.

EnergyAustralia has over two million conversations with customers every year, either over the phone or via digital service channels. It also engages with more than 100,000 individuals, businesses and stakeholders annually through formal research to help shape business decisions, products and services.

Monitoring and follow-up

To gauge customer feedback about retail services and performance, customer satisfaction surveys are conducted regularly.

In Hong Kong, an external market research consultant conducts an annual telephone survey. The customer satisfaction score considers overall satisfaction towards CLP and a relative rating against an ideal utility in Hong Kong. The score is benchmarked against the public utilities in the energy sector and other public service organisations.

In addition to the number of calls and complaints received, EnergyAustralia also measures customer satisfaction through its Strategic Net Promoter Score (NPS). Customer satisfaction is measured monthly via an online NPS survey sent to a representative group of customers. The Transactional Net Promoter Score is also used to track customer satisfaction in relation to specific customer interactions, providing more direct feedback to frontline staff.

GRI reference: 417-3

Hong Kong

In 2021, CLP Power’s customer satisfaction score dropped slightly, though remained on par with other public service organisations.

During the pandemic, CLP Power has successfully communicated the benefits of smart meters to customers. By the end of 2021, CLP Power was on schedule to have rolled out over 1.2 million smart meters. The insights gained through customer use of smart meters allows the Company to create more focused products and services that better match customer needs.

Australia

While customers have continued to experience the impact of COVID-19 on their day-to-day lives, EnergyAustralia has demonstrated its continued commitment to its customers by focusing on the quality of service they receive. Enhancements to the EnergyAustralia app have seen more than 110,000 downloads in 2021 providing a new channel for customers to interact aligned to their preferences, which has helped drive a 10% reduction in call volumes.

Complaint volumes continued to decline, with total complaints received declining by 14% from the 2020 figure. This result was brought about by continued improvements in internal and external dispute resolution practices, and operational interventions to address key billing complaint drivers.

EnergyAustralia has been measuring its Strategic Net Promoter Score (SNPS) to assess customer engagement since 2012. This is measured monthly via an online survey, which is sent to a representative group of customers. The Transactional Net Promoter Score (TNPS) is also used to track customer satisfaction in relation to specific customer interactions, providing more direct feedback for frontline staff. EnergyAustralia’s TNPS has increased steadily in the past three years. This reflects better quality interactions and customers valuing the extra support EnergyAustralia offered.

GRI reference: 418-1

In Hong Kong, the Personal Data (Privacy) Ordinance (PDPO) governs the protection of personal data of individuals. The Data Protection Principles in the PDPO frame CLP Power’s obligations (as a data user) relating to the collection, accuracy, retention, use and security of personal data, and a customer’s right to access their personal data.

EnergyAustralia has obligations under the Privacy Act 1988 to ensure that personal information is appropriately used, handled and managed. Under the Privacy Act, there are mandatory data breach reporting obligations. EnergyAustralia is required to report notifiable data breaches that are likely to result in serious harm to individuals to the Office of the Australian Information Commissioner (OAIC) and to the affected customers.

Throughout 2021, the Australian Competition and Consumer Commission (ACCC) continued consulting with the energy sector on the Consumer Data Right (CDR). The CDR will give customers the right to share their transaction, usage and product data with service competitors and comparison services, if they choose to do so. Under the customer's direction, EnergyAustralia will be obligated to provide data to accredited third parties. Comparable obligations have already commenced in the Australian banking sector. This reform is anticipated to be in force within the energy sector by mid to late 2022.

Strategy and procedures

The CLP Privacy Principles set out the Company’s commitment and approach to protecting personal data.

All employees must follow CLP procedures, practices and local regulations in relation to personal data privacy. The Group preserves the confidentiality of the personal data provided to it in accordance with the CLP Privacy Policy Statement, which was updated with effect from 1 November 2018. The CLP Privacy Policy Statement demonstrates the Company’s approach to protecting personal data and is applicable to everyone across its entire operations who handles personal data.

In addition, business units with operations in Hong Kong must implement and abide by the CLP Personal Data Protection Compliance Manual (2021 version) which sets out CLP’s data protection compliance framework, including its governance structure and the corporate data protection officer’s roles and responsibilities. This manual also provides guidance on the protection and use of personal data. Adherence to policies and procedures regarding privacy and data protection are further embedded in CLP’s Code of Conduct and the compliance management procedures of the Code.

Monitoring and follow-up

Across the Group, CLP monitors and documents any complaints related to breaches of customer privacy and the loss of customer data. In addition to the CLP Personal Data Protection Compliance Manual, the Customer & Business Development Unit has a written guideline for handling customer data incidents. The guideline includes the classification and assessment of the scope and severity of a data incident, reporting roles and responsibilities, and the incident response strategy and checklist. The Corporate Data Protection Officer also retains a record of data incidents and follow-up actions.

EnergyAustralia has developed and maintains a Data Breach Response Plan which is implemented by a Data Breach Response Team. The plan outlines the strategy for assessing, managing, containing and reporting data breaches within required timeframes and outlines roles and responsibilities. It is enacted each time a potential data breach is identified.

Training and awareness

In further reinforcing CLP rules to protect customer information, a key focus has been the prevention of unauthorised disclosures to malicious attackers or impersonators. Specific awareness activities, including communications, quality assurance assessment, coaching and additional training for frontline staff, were carried out during the year. Company-wide communications, employee training and briefing sessions with leadership were also conducted to ensure all staff understand current privacy and data management obligations. A Data Breach Response Plan is in place. It establishes a Data Breach Response Team to ensure the business has the capability and procedures in place to respond swiftly to such incidents.

Customer privacy may be compromised as a result of a cyber security incident, or by the mishandling of customer information by employees. Following the compulsory e-learning programme on data protection for all employees in 2020, the e-training was mandated in 2021 for all new joiners, Legal Review Committee meetings, as well as all data protection officers and record managers. Within individual business units, CLP runs data protection awareness programmes through briefings, posters, case studies, quiz games and refreshers. Industry threats are continuously reviewed with a view to strengthening controls on managing and monitoring networks, systems and mobile devices, data loss and suspicious cyber activities. CLP also regularly reinforces the need for timely reporting of potential privacy incidents.

At EnergyAustralia, customer privacy remains the focus of briefing sessions with leadership, enterprise-wide communications and employee training to ensure all staff are up-to-date with current privacy and data management. Specific awareness activities (including communications, further training, quality assurance assessments and coaching) for frontline staff took place in 2020. This has further reinforced rules to protect customer information.

GRI reference: 418-1

CLP Power had no customer data loss cases reported in 2021. It had two privacy data incidents related to employee matters. One of these incidents was reported to the Privacy Commissioner for Personal Data who is pursuing this matter with the employee and the employee’s previous company directly with no further action required by CLP Power.

In 2021, CLP Power was awarded the Gold Certificate in the Privacy-Friendly Awards from the Office of the Privacy Commissioner for Personal Data (PCPD), Hong Kong, in recognition of its performance in the protection of personal data. PCPD carried out an inspection on CLP Power in 2021, and positively recognised seven aspects of CLP’s practices considered to be exemplary for the public utility industry.

In 2021, a notifiable data breach associated with an email containing private information sent incorrectly to an EnergyAustralia customer’s old email account was reported to the Office of the Australian Information Commissioner. The breach did not result in any penalty or sanction and EnergyAustralia has been working with the customer on a solution to the matter.

The Personal Information Protection Law (PIPL) became effective in China in November 2021. It is Mainland China’s first comprehensive legislation regulating the protection of personal information. While CLP China is not involved in the consumer market, it has considered the PIPL and related implementation regulations, and is in the process of developing compliance actions including changes to human resources policies and the transmission of human resources-related data to Hong Kong.

Strategy and procedures

Drawing on CLP’s long expertise in the power industry, residential and business customers and the community at large are being encouraged to use energy more efficiently and change their behaviour so that they can save more energy and help protect the environment.

CLP aims to change people’s habits and encourage them to conserve energy through:

• Equipping customers with tools and technical support;
• Supporting enablers to make greater energy efficiency possible;
• Providing customers with information and energy-saving tips; and
• Educating the public.

Goals and targets

The CLP Power Customer Service Quality Policy includes a commitment to support customers in using CLP products and services more efficiently and effectively.

In Hong Kong, CLP Power is regulated by the Scheme of Control (SoC) Agreement, in which the current SoC (2018-2033) refines the list of energy saving and demand side management goals and targets covered in the previous SoC (2008-2018). The SoC (2018-2033) includes:

1. Performance targets for the energy audit and energy saved from the energy audits. Under the current SoC, targets are set at about four times the rate of previous targets. This will see 600 energy audits available to business customers a year with total electricity saved expected to reach 48GWh each year.
2. Demand response programmes offered to commercial and industrial customers to lower the overall system demand, resulting in a lower requirement for investment in new generation units in the long-term. The target for this initiative is to achieve a reduction of up to 60MW from the demand peak.
3. A new five-year energy saving target. CLP must achieve at least 4% of energy savings on the basis of the average annual sales within a five-year period in order to earn incentives issued under the SoC. More incentives will be given if the energy saving reaches 5%.

GRI reference: 2-6, 302-5

CLP's investment and venture portfolio continued to support the Company in developing its energy businesses, generating opportunities in growth markets and delivering strategic value. CLP exercises a prudent portfolio management approach through in-depth analysis and proactive management. In 2021, the Group invested HK$91 million, compared with HK$78 million in 2020¹, in creating a portfolio that consists of venture capital funds based in key innovation hubs, joint ventures with Other Sources Energy Group, which has a proven investment track record in clean energy technologies in Israel, as well as direct equity investments in various companies.

Other channels that CLP has adopted to enhance its service offerings included technology licensing, supporting accelerator programmes such as FreeElectrons, and partnering and co-creating customer-facing solutions with suppliers, customers or other partners. These efforts have helped CLP develop a suite of end-to-end products and services along the electric utilities value chain. They are summarised in the tables below.