Customers

CLP Power is the sole electricity provider for Kowloon, the New Territories and most of the outlying islands in Hong Kong. It serves about 2.83 million customers accoutning for over 80% of Hong Kong’s households. Total electricity sold in 2024 was 36,125GWh.

Despite its status as a mature market, Hong Kong continues to experience growing demand for electricity. This is largely being driven by territory-wide development and infrastructure projects, as well as new local railway infrastructure projects. Due to Hong Kong's Northern Metropolis Development Strategy, it is essential to ensure highly reliable power supplies to support this ambitious transformation of the New Territories into a major urban centre and technology hub.

EnergyAustralia operates as a retail energy provider, selling electricity and gas to customers in New South Wales, Victoria, South Australia, the Australian Capital Territory and Queensland (electricity only). It is among approximately 30 retailers active in the key markets of New South Wales and Victoria.

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

Strategies and procedures

While CLP has generation businesses across the Asia-Pacific region, Hong Kong is the only location where its business is vertically integrated, so that it provides generation, transmission and distribution of power as well as retail services. CLP Power is regulated by the Hong Kong SAR Government under the Scheme of Control (SoC) Agreement, which requires the Company to provide a sufficient and reliable electricity supply at a reasonable price and in an environmentally responsible manner.

In Hong Kong, CLP Power employs various measures to maintain high supply availability and high reliability. These include:

• Regularly upgrading generation and network facilities to meet increasing electricity demand;
• Maintaining sufficient generating capacity to meet forecast demand as well as to cope with both planned and unforeseen outages;

• Strengthening energy security by providing access to competitive gas supplies from global markets using Floating Storage and Regasification Unit (FSRU) technology;

• Implementing the demand response programme in a selected distribution network to resolve temporary local peak demand, improving supply reliability while optimising the utilisation of existing assets. This programme is also helping CLP better prepare for the new demand arising from increasing Electric Vehicles and Renewable Energy systems penetration;
• Using cage drones equipped with a Light Detection And Ranging (LiDAR) system and sensors, as well as crawler robots, to undertake flexible and regular inspections of narrow and physically constrained areas of power stations, to enhance operational efficiency;

• Fully deploying a centralised digital Asset Health Monitoring System to monitor and assess the health condition of critical power supply equipment to formulate effective preventive maintenance plans;
• Installing appropriate lightning protection systems to safeguard outdoor power equipment against lightning strikes, thereby reducing the occurrence of voltage dips;
• Enhancing anti-flooding measures for high-risk substations;
• Accelerating the replacement of identified assets to improve power system performance;
• Deploying a smart management system (Grid-V) to enhance the real-time monitoring of critical power equipment and its operating environment;
• Enhancing collaboration with relevant government departments, community stakeholders and property management companies and manpower support in handling emergency events to support customers affected by power incidents;
• Developing a well-trained and competent workforce to operate and maintain the system.

In addition to recruiting professionals from the market, CLP also trains young engineering talents through systematic training schemes. It established the CLP Power Academy in 2017 to collaborate with overseas and local tertiary institutions to train electrical and mechanical engineering professionals, thus creating a healthy succession pipeline for the power industry.

To guarantee the availability and dependability of its power supply, CLP is working to strengthen its technological capabilities and enhance its organisational development across the Group. Departments collaborate to design for an integrated management framework by sharing insights gained from regional experiences. This procedure is lowering the Group's overall operations risk and contributing to improved portfolio management.

A number of innovative projects to promote energy availability and reliability are currently being pursued in the areas of robotics, asset health, video analytics, energy storage, building information modelling (BIM) and automation. These projects have been initiated both by third parties and CLP's own engineers, who are developing innovations based on their own operational experience. 

Transmission network

To keep pace with the territorial development of Hong Kong, CLP conducts an annual review of future transmission network developments, assessing the latest system maximum demand forecast, as well as reviewing area load growth, infrastructure development and generation development for future planning.

Major transmission assets undergo annual maintenance and improvement programmes based on an analysis of current conditions, performance of the assets, levels of investment and risk.

CLP Power's reliability performance

In Hong Kong, CLP has maintained its world-class supply reliability of 99.999%, surpassing the reliability performance of other major international cities such as London, New York and Sydney.

CLP’s transmission and distribution network in Hong Kong serves approximately 80% of the city’s overall population. At the end of 2024, CLP Power had approximately 17,123 km of circuits at medium or higher voltage. In addition, there were 250 primary and 15,759 secondary substations operating in Hong Kong. As of 2024, the average network loss for the past five years was 3.36%, slightly lower than the five-year average of 3.44% reported in 2023.

CLP uses a set of universally recognised supply reliability performance indicators from the Institute of Electrical and Electronics Engineers standard (IEEE 1366-2012) to monitor its system performance. It reports CLP’s performance against these indicators quarterly to the Hong Kong SAR Government.

Comparison of reliability levels between cities

Careful planning during the project development stage plays a crucial role in determining the operational efficiency or capacity factor range of an asset over its entire lifespan. Projects involving a major asset overhaul must undergo stringent technical and financial scrutiny before commencement.

Monitoring and follow-up

CLP’s customised Group Operations Information System (GOIS) is used to compile operational data on adherence to the Generator Operational Performance Data Standard. It features built-in data collection, a data compilation and approval sequence and a dashboard and reporting functions. Relevant staff at each asset, and at regional and Group levels are responsible for upholding the standard.

Energy efficiency for its asset operation

On the energy conservation and efficiency front, CLP continues to strengthen its electricity supply networks and infrastructure to offer high-quality, efficient and reliable electricity in its operating regions. The Company uses innovative technologies and has developed energy management programmes and initiatives through environmental management processes and tools. In CLP's major offices, building energy management systems with energy-efficient features have been deployed, with some upgraded with artificial intelligence algorithms to support smart energy control, particularly for air conditioning. Regular energy audits assess energy consumption efficiency and identify opportunities for improvement. CLP Power also sets energy-saving targets with a defined timeline for selected offices. An internal energy use target ensures energy utilisation remains below a reference Energy Utilisation Index (EUI). 

Fuel use and energy sent out

In 2024, the consumption of coal and gas for power generation increased by 4% and 3% respectively compared with 2023 (on an operational control basis). Accordingly, electricity sent out from coal assets decreased by 1%, while electricity sent out from gas assets increased by 3% (on an equity plus long-term capacity and energy purchase basis).

CLP reports the annual operating performance of those of its generation assets that fall within the reporting scope. The asset performance metrics include availability, generation sent out, thermal efficiency and energy intensity.

Strategy and procedures

CLP is implementing various initiatives to encourage residential and business customers and the community at large to use energy more efficiently and contribute to environmental protection. They include:

• Equipping customers with advanced tools and technical assistance;
• Helping customers with ways of unlocking greater energy efficiency;
• Offering customers valuable energy insights and practical tips for energy conservation; and
• Educating the public through awareness campaigns and informative programmes

In Hong Kong, CLP Power has worked closely with the Hong Kong SAR Government on the Scheme of Control (SoC) Agreement. The Plan includes:

1. Performance targets: Under the current SoC Agreement, targets have been set on supply restoration, energy saved annually, number of buildings or customers supported, the CLP Eco Building Fund, Electrical Equipment Upgrade Scheme and Energy Audit.
2. Peak Demand Management programmes: This enables commercial and industrial customers to help lower the overall system demand, reducing the need for investment in new generation units in the long term. The programme leverages artificial intelligence (AI) developed in partnership with Autogrid to help lower demand. The target is to achieve a reduction of up to 60MW from the demand peak.

3. A new five-year energy-saving target: CLP Power must achieve energy savings of at least 4% on the basis of average annual sales within a five-year period in order to earn incentives under the SoC Agreement. More incentives can be earned if energy savings reach 5%.

Investing in innovation

In addition to its SoC Agreement obligations, CLP has harnessed its innovation abilities and digital capability to develop a range of customer-facing solutions and energy services.

CLP has a dedicated venture capital team (Group Ventures & Investments) that invests in a range of early-stage companies focused on innovative, energy-related technologies and business models. In addition, CLP’s Research & Ecosystems functions integrate the Company's research capabilities and ecosystem activities in a single team. This enables a more systematic and synergistic process of formulating strategic focus and long-term vision, extracting strategic knowledge and value, building up research networks and ecosystems worldwide and driving innovation delivery across the CLP Group.

CLP has established a global open innovation platform designed to identify solutions that address operational challenges, enhance efficiency and unlock new business opportunities. Committed to continuous innovation, CLP actively participates in accelerator programmes aimed at discovering novel solutions and promoting innovative practices. Through initiatives like Free Electrons and the Phoenix scouting programme, CLP collaborates with startups worldwide. These partnerships enable CLP to gain valuable market insights and enhance its solution offerings, strengthening its ability to meet customer needs and effectively navigate the energy transition.

CLP’s research initiatives are dedicated to identifying emerging ideas and technologies that could have a significant long-term impact on CLP's business and the energy transition. CLP has established robust research networks and partnerships with local and international associations, research institutes and universities to collaborate on key projects. Notably, CLP is exploring transport decarbonisation through its Research Fellowship Scheme and studying the utilisation of urban flexible load resources to enhance power system flexibility. This includes potential joint research initiatives, which are being explored with universities in Hong Kong and Mainland China.

Summary of energy services and solutions

Improving energy efficiency
Products and services		Updates in 2024
	Cooling-as-a-Service (CaaS) Cooling systems are usually a building’s largest source of power consumption. CLPe provides targeted solutions such as chiller retrofitting and replacement services, CaaS and district cooling solutions to enhance energy efficiency and reduce carbon emissions of building complexes. Under the Build-Own-Operate-Transfer model, CLPe will fund, design, construct, operate and maintain the new cooling system over a period of time at an agreed rate to enhance energy efficiency and reduce carbon emissions of building complexes.	In May 2024, CLPe partnered with Pacific Textiles Holdings Limited to provide Cooling-as-a-Service to its subsidiary Pacific Panyu Textiles Limited in Nansha, Guangzhou. CLPe will build a new centralised electricity chiller plant system which is more energy-efficient and environmentally friendly to replace the existing distributed, aged absorption chiller plant system which is expected to reduce carbon emissions by about 42,700 tonnes of carbon dioxide annually. This aims to become an energy-saving benchmark project for the industrial segment in Nansha and Guangzhou. CLPe signed a Memorandum of Understanding (MoU) with Hysan Development Company Limited to explore innovative energy efficiency solutions. This includes a distributed district cooling system in commercial properties in Causeway Bay, a major shopping district in Hong Kong.
	Solar-as-a-Service (SaaS) CLPe offers seamless, one-stop services to help customers install and operate solar power systems over a period of time at an agreed rate. Solar photovoltaics (PV) systems convert solar energy into electricity to support energy demand and allow customers to feed electricity back into the grid.	CLPe signed Build-Own-Operate-Transfer Service Agreements with Link Properties Limited, encompassing a total of 23 solar generating systems. In June 2024, CLPe has teamed up with the City University of Hong Kong to install a solar power system across the campus. Nearly 2,000 high-efficiency bifacial solar panels will be fitted on the rooftops of more than 30 buildings on the campus by CLPe. The system is expected to generate approximately 1.15GWh of electricity per year. CLPe is expanding the floating PV system at San Tin Polder in support of the Government’s sustainable development plan. In August 2024, a commissioning ceremony was held at MTR Corporation (Shenzhen) Limited (hereinafter referred to as MTR (Shenzhen)) to mark the completion of the distributed solar PV system and electric vehicle charging system. CLPe installed over 5,600 solar panels on the aluminium alloy roof of the car compartment inspection and washing depot, expected to generate 3,140MWh of clean energy and eliminate over 1,600 tonnes of carbon emissions annually.
	Battery Energy Storage System (BESS) as-a-Service Tailor-made BESS solutions can greatly improve business performance by providing safe, efficient and secure energy storage. CLPe provides a one-stop design, build and implementation service, technical support and maintenance work and collaborates with its customers over a period of time at an agreed rate to develop fully integrated energy storage solutions that meet their specific needs.	In 2024, CLPe deployed 94 Battery Energy Storage Systems across construction sites operated by prominent construction companies in Hong Kong. The replacement of conventional diesel generators resulted in a reduction of over 2,500 tonnes or a 75% reduction in carbon emissions compared to those created by diesel generators. These BESS installations, powered by advanced lithium-ion batteries, minimise the risk of system instability during maintenance while operating at significantly lower noise levels. They exemplify CLPe's commitment to sustainability and safer construction practices. In September 2024, CLPe facilitated the launch by Hip Hing Construction Co., Ltd of Hong Kong’s first mobile BIM CAVE system, providing the Company with a compact and mobile BESS as a stable and reliable power source.
	Energy efficiency improvement for buildings CLP Eco Building Fund: The fund provides subsidies for energy efficiency improvement works for residential, commercial and industrial buildings. CLP Electrical Equipment Upgrade Scheme: The scheme for business customers provides subsidies to customers, especially SMEs, to replace or upgrade their lighting and air-conditioners to more energy-efficient models.	The CLP Eco Building Fund provides HK$100 million a year to subsidise improvement works for a target number of 400 residential blocks and C&I buildings that will enhance the energy efficiency of their communal areas. The initiative aims to save 48GWh of energy annually. In 2024, customers saved around 50GWh of electricity from over 600 buildings with the support of the CLP Eco Building Fund. Since the launch of the CLP Electrical Equipment Upgrade Scheme in 2019, over HK$140 million in subsidies has been offered to C&I customers for replacing or upgrading their electrical equipment to more energy-efficient models.
	Energy efficiency improvement for businesses CLP Power works in partnership with institutions to offer flexible and innovative financing solutions to businesses.	CLP Power, Link Asset Management Limited (Link) and DBS Bank (Hong Kong) Limited launched the Low Carbon Rewards Programme in 2024 to support the transition of Link’s small- and medium-sized enterprise tenants to low-carbon operations. This initiative combines the partners' expertise in asset management, banking and energy management, offering incentives such as subsidies for renewable energy certificates and banking privileges. The programme aims to foster a sustainable business environment, benefiting both merchants and consumers by promoting sustainable practices and enhancing revenue opportunities. CLP Power, CLPe and Gaw Capital Partners have signed a Memorandum of Understanding (MoU) to enhance energy efficiency across various premises. This initiative aims to reduce carbon emissions and support a sustainability-linked loan of HK$14.4 billion, fostering more sustainable development within Gaw’s portfolio.
	Peak demand management Demand Response programmes are offered to C&I and selected residential customers in Hong Kong to lower overall system demand, reducing the need to invest in new generation units. EnergyAustralia’s PowerResponse includes a residential demand response programme and a contracted demand response programme for commercial customers.	In Hong Kong, CLP Power achieved around 144MW and 93MW demand cut from residential and C&I customers respectively in 2024. EnergyAustralia’s PowerResponse has a current contracted capacity of 406MW involving over 575,712 household customers and 626 business and large industrial customers.
	Energy management technology Launched in 2019, CLP’s Smart Energy Connect (SEC)’s solutions cover the entire value chain from energy supply to energy consumption and include innovations for carbon-free energy, grid modernisation, power storage, EVs, building energy management and carbon offsetting. A  mass rollout of smart meters to all CLP Power customers, from 2018 to 2025, is supporting Hong Kong’s Smart City transformation.	Since 2018, CLP Power has connected over 2.68 million smart meters for its residential and SME customers in an effort to promote low-carbon living and further improve the safety and dependability of the power supply. CLP Power expects to replace all its residential and SME customers’ conventional electricity meters with smart meters by 2025. As of 31 December 2024, EnergyAustralia had approximately 895,000 smart meters installed for its customers across Australia. It is entering into the Legacy Meter Replacement Plan (LMRP) in December 2025, which aims to replace all basic meters by the end of 2030, increasing the total number of smart meters to over 2 million.
	Energy audits CLP Power provides free energy audits and various consulting services to C&I customers to help them understand their energy needs and identify opportunities to reduce their energy use and hence their operating costs.	In 2024, CLP Power had exceeded the annual total electricity saving target of 48GWh, and helped its C&I customers save around 50GWh of electricity with more than 600 energy audits completed.
	Energy data and analytics At EnergyAustralia, PurchasePro is a self-service web portal which allows business customers to purchase an agreed load progressively rather than commit to a price at a single point in time. Smart Energy Online is an online assessment and management tool for C&I customers in Hong Kong. Similarly, EnergyAustralia's InsightsPro allows its C&I customers to access real-time consumption and cost data to optimise their business’s energy usage.	Approximately one third of EnergyAustralia’s C&I customer load is managed by PurchasePro and over 1,000 EnergyAustralia customers have access to InsightsPro. Over 2,500 C&I customers in Hong Kong use Smart Energy Online to manage their energy consumption and improve their energy efficiency.
	CLP Retro-Commissioning and Retrofitting Training Upgrade Programme CLP Power offers free retro-commissioning and retrofitting training courses comprising classroom trainings and field visits for energy management employees and engineers who already have a basic understanding of retro-commissioning and retrofitting. The training covers advanced topics and techniques such as data analysis, system diagnosis, measurement and verification.	In 2024, CLP Power allocated HK$1.15 million to launch the CLP Retro-Commissioning and Retrofitting Training Upgrade Programme. The programme provides training courses covering a variety of energy-saving solutions including retro-commissioning and building services replacement projects for employees involved in energy management across different businesses. It aims to encourage C&I customers to retrofit and decarbonise their existing premises for greater energy efficiency and lower operating costs in the long run.

Using electricity more widely for transport industry
Products and services		Updates in 2024
	Electric Vehicle Charging-as-a-Service Electric Vehicle Charging-as-a-Service is a one-stop fleet charging offering that enables fleet customers to enjoy flexibility in their fleet electrification journey while saving capital investments related to charging infrastructure and software. CLPe will invest, design, build, operate and maintain Electric Vehicle Charging-as-a-Service charging solutions in their own or other premises over a period of time at an agreed rate.	In 2024 CLPe signed a number of Electric Vehicle Charging-as-a-Service contracts with target customer groups including electric minibus supplier, corporate fleet operator and electric taxi provider. This reinforces the proposition CLPe is building by providing convenient fast charging stations for commercial use. In August 2024, CLPe launched the CLPe Charging mobile app for the use of CLPe public charging services. By the end of 2024, CLPe expanded its charging network to 6 different locations with more than 100 charging bays targeting both overnight and top-up fast charging needs of corporate fleet and taxi businesses. In addition to pay-as-you-go charging service, customers can also sign subscription contracts with CLPe with committed usages over certain periods at agreed rates. During the contract period, customers will pay a monthly fee to CLPe which covers the EV charging service and software license fees, thus, minimising the investment costs, company assets, charging location constraints and manpower needed for electrification. Other benefits include 24-hour customer support services and cloud management platform. The cloud management platform and mobile app designed by CLPe enable customers to easily manage their fleet users, make adjustments according to their operational needs and get the real-time availability status of charging facilities and the charging status of EVs with electricity consumption data.
	Electric vehicle infrastructure CLP Power continues to support green motoring and the electrification of vehicles in Hong Kong – a long-term government policy objective set out in the Hong Kong Roadmap on Popularisation of Electric Vehicles. In 2016, CLP formed Smart Charge (HK) Limited a joint venture with HKT to provide a one-stop service for EV charging. The CLP Charge Point Operator platform and EV driver app were successfully launched in 2023, both of which are instrumental to the electrification of the CLP fleet and the creation of a future business model that includes charging-as-a-service. In Australia, EnergyAustralia has outlined plans to support the transport industry with vehicle electrification by working with EV manufacturers, fleet operators and their customers to plan and build the charging infrastructure they need.	CLPe eMobility has installed close to 600 EV chargers in the past 2 years, out of which over 100 EV charging bays with majority of direct current fast chargers are connected to the CLPe public charging network, promoting commercial EV development in Hong Kong.  To date, Smart Charge has designed, installed and is currently managing EV charging infrastructure in residential car parks in Hong Kong covering more than 9,000 parking bays. In 2024, EnergyAustralia embarked on the first stages of rolling out a commercial green transport package, to support its business and C&I customers (primarily fleet customers such as bus depots), involving of EV charging systems to power their fleets. Its aim is to help its customers further decarbonise over time by powering a portion of their vehicle charging from solar and battery systems and participating in the Virtual Power Plant (VPP). EnergyAustralia’s approach represents the next horizon for emissions reduction in the broader market as it addresses ‘Scope 4 emissions’, through initiatives and products that help to avoid or reduce emission in other market segments or parts of the value chain. EVs are good examples of avoided emissions. While the production process generates emissions (as is the case for all vehicles), compared to vehicles with traditional internal combustion engines, EVs generate lower emissions over their lifetime. As an energy company, EnergyAustralia has a unique position in facilitating greater efficiency, electrification and electric vehicle infrastructure and contributing to lower emissions throughout the whole Australian economy. In parallel, operators of electrified fleets of vehicles will benefit from the continuing decarbonisation of the electricity they access for charging from the grid as the national electricity market continues to decarbonise, from lower electricity consumption as vehicle efficiency continues to improve and from lower emissions if they invest in expanding "behind the meter" solar and battery systems.

Enabling zero-carbon electricity supply
Products and services		Updates in 2024
	Decentralised renewable energy/rooftop solar CLP offers feed-in tariffs and rooftop solar for its customers in support of the decentralisation of energy and the growth of renewable energy. The Feed-in Tariff (FiT) Scheme in Hong Kong enables customers to earn FiT payments by installing renewable energy system on their premises and connect the system to the CLP grid. The array of decentralised generation products has expanded in Australia to now include residential rooftop solar and batteries, community batteries and support the 150MW VPP.	From the commencement of the FiT Scheme in mid-2018 to the end of 2024, CLP Power received over 26,600 applications. Approximately 96% of the applications, representing a total capacity of around 404MW - equivalent to the annual electricity usage of around 99,700 residential customers, have been approved. About 23,800 applications have been completed and connected to the grid. A bring-your-own battery VPP product (“Battery Ease”) was launched as part of the growing Behind the Meter portfolio to provide solutions for residentials customers that already have invested in a residential battery to both lower energy bills during peak periods and manage peak price events. For customers without rooftop space, a community battery product was also launched so that a broader set of customers can partake in Australia’s decarbonisation journey.
	Corporate Power Purchasing Agreements (PPAs) Businesses wishing to increase the direct renewable energy available to them may elect to enter Power Purchasing Agreements with CLP. PPAs provide customers with the most credible and efficient clean energy available. There has been continued interest in the direct purchase of renewables whether via annual purchasing or 24/7 granular matching. In response to this positive market momentum, CLP is leveraging its expertise in renewable energy assets, battery storage and energy management indicators to support its corporate customers.	In October 2024, CLP China, BASF and Envision Energy signed a 10-year power purchase agreement to support BASF's adoption of 100% renewable energy at its manufacturing sites in Nanjing, Rudong and Zhenjiang in Jiangsu province. CLP will provide renewable energy to BASF's three manufacturing sites in Jiangsu from its solar projects in Wuxi, Huai’an and Yangzhou within the province and Envision Energy will help achieve green electricity settlement between CLP and BASF. As one of the largest external investors in the energy sector in Mainland China, CLP focuses on developing clean and renewable energy and providing green energy solutions to corporate customers. The agreement will contribute to BASF’s corporate goal of achieving net-zero carbon emissions by 2050 and accelerate the low-carbon energy transformation of Jiangsu.

Offsetting emission that cannot be otherwise avoided
Products and services		Updates in 2024
	Energy attribute certificates (EACs) CLP offers a range of EACs to support customers' decarbonisation objectives. In Hong Kong, Renewable Energy Certificates (RECs) offer an alternative way for customers to support local clean energy generation. Each unit of a REC represents the environmental attributes of electricity produced by local renewable energy sources, generated or purchased by CLP Power. In Mainland China, CLP China’s renewable assets issue Green Electricity Certificates (GECs) which are the only officially recognised renewable energy certificates in Mainland China. They can be used to meet obligations under Mainland China's mandatory Renewable Energy Portfolio Standard, or to support voluntary green power trading. In Australia, EACs serve as an option to reduce customers' Scope 2 emissions when decentralised renewables are not a viable option. For example, PureEnergy from EnergyAustralia helps customers support the production of green energy from government accredited renewable sources.	In 2024, close to 340GWh units of RECs were sold in Hong Kong, a significant increase from the 173GWh units sold in the past year. CLP China’s wind and solar projects are eligible to apply for and issue GECs that can be traded through the market. For example, the Qian’an III Wind Power Station in Jilin province transfers GECs to a multinational data centre client in Ningxia province. Around 11,000 EnergyAustralia customers have chosen a GreenPower government accredited PureEnergy option for their electricity supply.
	Carbon Credit Brochure CLP has recently transitioned its carbon credit-related information from the website to a brochure. This change aims to present the information in a more straightforward and accessible format.	The brochure is designed to provide a clear and concise overview of carbon credits, making it easier for readers to understand the benefits and processes involved. By simplifying the presentation, CLP hopes to enhance engagement and ensure that all relevant details are readily available to those interested in CLP’s carbon credit initiatives.
	Carbon Credits Carbon credits represent carbon emissions avoided as a result of emissions reduction projects. CLP encourages its customers and corporates to purchase these carbon credits to offset their unavoidable emissions. In addition to selling carbon credits, CLP also collaborates with many industries to deliver carbon offset initiatives.	CLP continues to support customers' decarbonisation journey through carbon offsets. Customers can offset their unavoidable emissions with CLP Carbon Credits after taking actions to reduce their emissions. In 2024, Apraava Energy has sold over 900,000 tCO2e units of offsets from their renewable generation assets to customers around the world. As at the end of 2024, EnergyAustralia had commenced the process of discontinuing its carbon offset products, Go Neutral for mass market customers, and Business Carbon Neutral. This will occur progressively in accordance with the terms that apply to customers. EnergyAustralia’s focus is now on helping its customers to directly reduce their emissions. EnergyAustralia, however, continues to recognise that high integrity carbon offsets have an important role to play in the energy transition and the achievement of Net Zero. It is noted that the use of such high integrity offsets, having regard to best practice guidance, will be required to mitigate residual emissions associated with achieving Net Zero for Scope 3 by 2050. In the context of EnergyAustralia’s Tallawarra B project, Australian Carbon Credit Units are currently being used to offset its Scope 1 emissions.

EnergyAustralia is required to report data breaches in any case of unauthorised access to, unauthorised disclosure of, or loss of personal information held by EnergyAustralia, if this is likely to result in serious harm to one or more individual and if EnergyAustralia has been unable to prevent the likely risk of serious harm with remedial action. Notifications must be made to the Office of the Australian Information Commissioner (OAIC) and to the affected customers with a description of the data breach, the kinds of information involved and recommendations for customer action in response to the data breach.

In May 2018, the Australian Government announced that energy data would be included in the Consumer Data Right (CDR). The sharing of product data in the energy sector commenced on 1 October 2022 and consumer data sharing commenced on 15 November 2022. It gives customers the right to share certain transaction, usage and product data relating to their electricity accounts with EnergyAustralia (a 'data holder') with authorised parties ('data recipients') under the CDR regime. These data recipients are then able to compare what other electricity offers may better suit the customer’s needs. EnergyAustralia was granted an exemption by the Australian Competition and Consumer Commission (ACCC) from the original commencement date in November 2022, requiring EnergyAustralia to commence CDR data sharing by 15 May 2023.

By 15 May 2023, EnergyAustralia successfully went live as a CDR ‘data holder’, meaning EnergyAustralia is now able to share information required under the CDR regime for most of its eligible residential, small business and large business customers. EnergyAustralia continues to refine its CDR data sharing platform as it receives feedback and enquiries from customers or other CDR participants. EnergyAustralia continues to rely on exemptions from CDR requirements in relation to certain innovative and trial products that EnergyAustralia offers, including ‘Solar Home Bundle’, among others. We expect to be able to comply with CDR requirements for these products by the end of 2025.

Strategy and procedures

The CLP Privacy Principles set out the Company’s commitment to protecting personal data and its approach to doing so. CLP has a designated Corporate Data Protection Officer who oversees governance of the personal data management of CLP's Hong Kong business operations. Their contact details can be found on CLP’s CLP Privacy Policy Statement.

The Group safeguards 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 statement lays out the Company’s approach to protecting personal data, and is applicable to everyone across its Hong Kong operations who handles personal data. All employees who have to handle or process personal data of any individual for business operations in Hong Kong must follow CLP procedures, practices and local regulations in relation to personal data privacy.

The CLP Personal Data Protection Compliance Manual sets out CLP’s data protection compliance framework, including its governance structure and the roles and responsibilities of different functions and personnel within it. All business units with operations in Hong Kong must implement and abide by this manual, which also provides guidance on the use and protection of personal data. Policies and procedures regarding privacy and data protection are further embedded in CLP's Code of Conduct and its compliance management procedures. 

Under the Code of Conduct, CLP commits to compliance with all laws and regulations and with the Company's own policies and procedures, including the data privacy laws and the CLP Data Protection Compliance Manual. The Code of Conduct stipulates that anyone found violating the Code will be subject to disciplinary action. CLP’s internal audit function appraises compliance with policies and procedures, and evaluates the effectiveness of the overall controls, in accordance with normal audit cycles and assessment scopes. In addition, suppliers are informed of and are expected to comply with the data privacy laws outlined in CLP’s Supplier Code of Conduct.

Monitoring and follow-up

CLP monitors and documents any complaints related to breaches of customer privacy and the loss of customer data. In addition to adhering to the CLP Personal Data Protection Compliance Manual, the Customer Success and Experience Business Unit has adopted a written guideline for handling customer data incidents. The guideline includes information about classifying and assessing the scope and severity of data incidents, about reporting roles and responsibilities, and it includes an incident response strategy and checklist. The Corporate Data Protection Officer also retains a record of data incidents and any follow-up actions.

EnergyAustralia has a Data Breach Response Plan, and a Data Breach Response Team responsible for implementing it. The plan includes information about assessing, managing, containing and reporting data breaches within required timeframes and outlines relevant roles and responsibilities. The plan is activated whenever a potential data breach is identified.

Training and awareness

To help prevent unauthorised disclosures of customer data to malicious attackers or impersonators, CLP carries out activities to raise staff awareness of the relevant risks. These include communications and quality assurance assessment and coaching and additional training for frontline staff. It also conducts Company-wide communications, employee training and briefing sessions with leadership to ensure all staff understand current privacy and data management obligations. A Data Breach Response Plan has been formulated and a Data Breach Response Team established to ensure the business has the capability and the procedures in place to respond swiftly to any such incidents.

A compulsory e-learning programme on data protection is given to all new employees, and is periodically mandated for all employees to refresh their knowledge. CLP also runs frequent tailored data protection awareness programmes, which include regular briefings, case sharing, quizzes and refresher activities, for employees who have regular interaction with protected data (such as members of the Legal Review Committee and frontline staff). Industry threats are continuously reviewed with a view to strengthening controls over the management and monitoring of networks, systems and mobile devices, data loss and suspicious cyber activities. CLP also regularly emphasises the importance of reporting potential privacy incidents in a timely manner.

At EnergyAustralia, briefing sessions on customer privacy include leadership, enterprise-wide communications and employee training to ensure all staff are up to date with current privacy and data management policies and practices. Privacy training is a compulsory requirement for all new employees and subsequent refresher training is provided to all employees annually.

Under Australia's Privacy Act 1988 (Privacy Act), EnergyAustralia has obligations to ensure the appropriate collection, use, disclosure and security as well as access to individual’s own personal information. There are also mandatory data breach reporting obligations in relation to Notifiable Data Breaches. On 28 November 2024, Parliament passed the first set of amendments to the Privacy Act to create a statutory tort for serious invasions of privacy and provide the privacy regulator with additional rights to enforce penalties for breaches of privacy. The new amendments also create a new obligation for EnergyAustralia to ensure that individuals are informed about situations where automated decision-making (ADM) ‘could reasonably be expected to significantly affect the rights and interests of an individual’. The timeline for compliance is two years. A second tranche of reforms is expected in 2025 and EnergyAustralia continues to monitor for developments.

In 2024, no cases of customer data loss were reported by CLP Power in Hong Kong or by EnergyAustralia.

Strategy and procedures

CLP provides customers with information about its products and services through various communication channels, including the email welcome pack sent to new customers, the CLP Power websites and the CLP Mobile App, as well as the EnergyAustralia websites and Mobile Apps. CLP also engages with its residential, commercial and industrial customers through satisfaction surveys, online service portals, site visits to its assets, account manager support and through its Customer Service Centres and Customer Interaction Centre.  

CLP strives to respond effectively to customer needs and preferences. All escalated cases are studied thoroughly to ensure issues raised by customers are appropriately resolved.

EnergyAustralia averages one to two million conversations with customers every year, either over the phone or via digital service channels. In 2023, EnergyAustralia handled more than 1.5 millions calls. It also engages with more than 100,000 individuals, businesses and stakeholders annually through formal research to help shape its business decisions, products and services.

Monitoring and follow-up

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

EnergyAustralia counts the number of calls and complaints it receives and measures customer satisfaction through its Strategic Net Promoter Score (SNPS). Customer satisfaction is measured monthly via an online NPS survey 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 to frontline staff.

Hong Kong

Australia

EnergyAustralia averages around one to two million conversations with customers every year, either over the phone or via digital service channels. In 2024, EnergyAustralia handled more than 2.2 million calls. It also engaged with over 110,000 individuals, businesses and stakeholders through formal research to help shape its business decisions, products and services.

Complaints received by EnergyAustralia

Total complaint volumes in 2024 decreased by 10% from the 2023 figure. Following challenges in the first half of 2023 across the industry, this year saw the situation stabilise with flow on impacts of a decrease in customers bypassing EnergyAustralia’s complaints process and decreased direct customer complaints. This resulted in customers showing greater trust in EnergyAustralia to resolve the complaint.

Despite these challenges, EnergyAustralia continued to go above and beyond to successfully address and resolve customer concerns through timely engagement and effective conversations with its customers preventing further escalations. 

This has been reflected in EnergyAustralia’s Transactional Net Promoter Score (TNPS) which is at a 6 year high of 36.8.

With reference to best practices across the globe, CLP has designed principles to help identify risks and controls when adopting AI in CLP's operations.

Strategies and procedures

The AI principles play a crucial role in CLP's governance approach by acting as the anchors to risks and controls when using AI. A summary of CLP's AI principles is:

• Accountability: Throughout the AI solution life cycle all stakeholders are responsible for adhering to the AI principles.
• Purposeful use: Each AI use case must have a clear purpose that aligns with CLP’s values.
• Fair, non-discriminatory and ethical design: CLP aims to ensure that outcomes of AI-embedded solutions are fair, non-discriminatory and ethical.
• Reliable, explainable and transparent AI: CLP ensures a thorough understanding of inputs to AI and implication of its outputs; maintains relevant transparency with pertinent customers, employees and stakeholders.
• Protect data privacy, data quality and ensure compliance: Existing obligations relating to data privacy, regulations and quality requirements do not change with the use of AI.
• Risk management: A risk-based approach is adopted to identify and assess risks arising from use of AI in operations. These in turn gives rise to controls and mitigations that reduce risks to acceptable business appetites.
• Security: Comply with CLP’s cyber security policies, to protect data & information when using AI in operations.
• AI knowledge excellence: Commitment to upskill employees, provide training and encourage continued adoption of AI in work processes. Promote knowledge exchange across use cases to leverage best-practices and continuous improvement.

Comprehensive efforts have been made to ensure compliance with the AI principles, identify incremental risks and design corresponding controls and mitigations. For CLP’s Hong Kong businesses an AI risk taxonomy together with an AI impact assessment have been developed and integrated into existing processes.

• Digital marketing platform: Included an event-driven customer messaging feature. This initiative has achieved an 80% reduction in turnaround time, significantly lowering the risk of Personal Identifiable Information (PII) data leaks. 
• AI-driven load forecasting: Implemented AI-driven short-term load forecasts (intra-day, next-day, and 9-day) to support business decisions related to dispatch and maintenance activities. 
• Knowledge retrieval chatbot: Developed knowledge retrieval chatbot powered by generative AI. This tool enhances domain training activities with multilingual content. Additionally, a similar solution has been introduced to streamline bespoke business processes, reducing manual workload.    

To support the Hong Kong Government's green and sustainable finance initiative, CLP collaborates with banks, certification bodies, and partners to create synergy and facilitate customers' access to green and sustainable finance solutions:

• Sustainability-Linked Loan (SLL): Collaborates with banks, certification bodies, and corporates to assist in setting sustainability performance targets. 

• SME Low Carbon Rewards Programme: A joint initiative with a bank and mall developer to encourage SMEs to adopt low-carbon operations and enhance sustainability practices. 
• Community Energy Saving Fund (CESF): Established to provide funding and sustainability services to support energy-saving projects. 

These initiatives involve a huge amount of data exchange between CLP and various entities, hence a secure, consistent, reliable and flexible data exchange gateway is indispensable for supporting different trials with low setup cost and short lead time. To address this need, CLP has developed the Reusable Data Exchange Gateway. This gateway has already been leveraged in multiple trials with different banks and organisations, enabling seamless and secure data communication to support the above innovative initiatives. 

• Operational Technology (OT): the hardware and software that monitors or controls physical devices (such as turbines) belonging to CLP.
• Information Technology (IT): the technology used to store, retrieve, transmit and process data or information.

CLP's cyber security management follows international cyber security frameworks, and includes setting guidelines for selecting and implementing security controls to mitigate cyberattack risks. To comply with local regulations, some Regional/Business Units have developed their own documents that align with both local requirements and Group Security's 20 baseline standards.

Training and awareness

The Group's employees are its first line of cyber security defence, and need to know how they can protect themselves and the Company from cyberattacks.

CLP makes continual efforts to raise cyber security awareness among employees and encourage them to adopt good cyber security practices. Security awareness activities include simulated phishing emails, internal broadcast campaigns, briefings, road shows and videos.

Monitoring and follow-up

CLP continually monitors its IT and OT systems and networks, staying alert for potential threats. Advances in cyber security technologies have helped improve the Group's ability to prevent, detect, react and recover from cyber security incidents in both the IT and OT network environments.

The Security Operations Centre (SOC) has refined its operations and accelerated its incident response capability. Employees are reminded regularly to report suspicious cyber activity directly to CLP Group Security via various channels, and suspicious emails can be automatically reported with the click of a button.

Given that cyber security is one of CLP's top-tier risks, it is regularly assessed and reported to senior management through the risk management process. Cyber security risks to CLP Group, its investments and business interests are managed in line with CLP’s established Risk Management Framework. Group Security offers business asset owners and project managers a Cyber Security Governance and Risk Management framework which helps them identify, assess and manage cyber security risks in line with their overall business objectives. Evidence of treatment action is gathered and the Group Security team track progress, re-assessing risks periodically or when there is significant configuration change. Appropriate internal and external validation and assurance (e.g. ‘red team’ cyber simulations) supplement the risk-based approach and CLP closely collaborates with broader government and law enforcement drills on a regular basis.

Work on cyber security has also continued throughout the year in Mainland China, India and Australia. CLP plans to continue to enhance its processes, personnel and technology capabilities and the Company is committed to retaining and acquiring the expertise required to execute them effectively.

The Group Security Policy addresses the following areas

• Integrated and centralised organisation and governance – CLP has developed an integrated, enterprise-wide Group Security function within CLP Digital to provide security support to all areas of the business.
• Standards and guidelines – CLP applies standards, guidelines, procedures and processes to manage and monitor the organisation's regulatory, legal, risk, environmental and operational requirements in line with recognised industry standard.
• Understanding the threat – CLP ensures decisions related to the application of security measures are appropriately informed and, wherever possible, intelligence driven.
• Communications and awareness – CLP continuously enhances the security awareness and knowledge of its employees and contractors with the objective of encouraging positive security behaviour.
• Technical domain – CLP ensures that robust operational security protocols are developed, applied and maintained.
• Liaison – CLP maintains constructive and trusted security relationships with relevant government agencies and industry bodies to ensure speedy and effective cooperation when the need arises.

The Group Security team was established to ensure that CLP’s cyber and physical security capabilities and efforts complement each other. The team gives CLP in-house capabilities across the full range of security skillsets. Regular reports are provided by Group Security to the Board’s Audit & Risk Committee (ARC), providing assurance that adequate risk management is in place and that appropriate remedial action is being taken where needed.

Strategies and procedures

Physical security encompasses physical measures to safeguard people, prevent unauthorised access to equipment, facilities, material and documents and safeguard these items against security incidents. It includes physical barriers (e.g. fences), security lighting, physical access controls and surveillance systems.

CLP has developed a body of standards and guidelines to assist all regions and regional assets in establishing or revising their security management documentation. These are aligned with international standards for security and lay out best practices from across the Group. They include:

• The CLP Physical Security Standard: Lays down the minimum standard of physical security measures expected at every asset owned or operated by CLP, regardless of location or role.
• The CLP Physical Security Guideline: Provides practical guidance on the security requirements expected of all business units, in line with the Group Security Policy and Physical Security Standard. For instance, it includes guidelines on how to identify potential areas of weakness, develop appropriate security countermeasures and prepare a security response plan.
• The CLP Security Vulnerability Assessment Guideline: A flagship document that lays down the process for evaluating the security status of any CLP site. Applied in close collaboration with the operator, it provides a comprehensive security health check using a risk-based approach that covers threats and areas of weakness and offers solutions.
• CLP’s Security Due Diligence for Project Design and Construction or Site Acquisition: Developed to support projects in the early stages of acquisition or construction. All projects and acquisitions undergo this due diligence process, regardless of size.

• The CLP Business Travel Risk Management Plan: Minimises the security, medical and health risks faced by employees engaged in business travel. On behalf of the Group, the Security team in CLP Digital leads on business travel security in close cooperation with Group HR and Group Finance.

Training and awareness

CLP security staff must always comply with CLP’s Code of Conduct. They receive related training on an annual basis. In addition to training on national regulations and site-specific requirements, contract security staff receive induction training on CLP policies relating to a harassment-free workplace, minimum wage guidelines and measures preventing discrimination in the workplace. They must complete this induction training before being granted access to their assigned workplace sites.

Regular travel security awareness briefings and associated materials are available for anyone engaged in business travel.

Strategies and procedures

CLP maintains robust and regularly tested emergency response and crisis management procedures. As the first line of defence, the Incident Management Process (shown below) is activated whenever any incident arises.

CLP incident management process

Crisis Management Plan

CLP’s Group Crisis Management Plan ensures high levels of preparedness in responding to and recovering from emergency situations and helps minimise disruption to customers. The Plan is continually being reviewed and enhanced to ensure it remains in line with operational changes and the broader operating context. It provides a strong platform for effectively handling any crisis at the Group level. The plan:

• Outlines crisis management organisation, roles, responsibilities, procedures and processes;
• Specifies the tools needed to ensure the collective response is well planned, well executed and fully integrated across the organisation;
• Describes the relationship and interface between the handling of regional- and Group-level crises; and
• Details the processes that govern internal and external communications during emergencies and crises, ensuring that those responsible for managing a crisis have the necessary information to carry out their responsibilities and that key stakeholders are informed.

The Group-level plan is supported at the regional level by Regional Crisis Management Plans which mirror the Group document but are tailored for each region. In addition, detailed emergency response plans have been developed for each asset. These plans are designed to be used by first responders and asset managers.

CLP’s Crisis Management & Emergency Response Structure is outlined in the diagram below.

CLP crisis management & emergency response structure

Training and awareness

As specified in both Group and regional publications, emergency response drills are conducted at least annually at all Group sites, with smaller scale drills taking place more often. Group and Regional Crisis Management Plans are reviewed at least every three years. Regional crisis management exercises are conducted annually as part of the internal peer review process.

From a crisis management perspective, the emphasis of the Company has been on maintaining and enhancing capability. Initiatives continued in the year include:

• Assessing potential replacements for the now established interim solution for the Crisis Communications Billboard (CCB 2.0) which was rolled out in early 2024;
• Rewriting the Group Crisis Management Plan to reflect the CLP Group’s move to its new Headquarters office building in Kai Tak;
• Supporting CLP Power in its drafting of business continuity plans and playbooks to support new scenarios; and
• Creating an upper tier Group Business Resilience Policy and framework to encompass them.

Crisis management during extreme weather events

CLP has strengthened safeguards, increased contingency measures and enhanced monitoring to ensure its electricity supply systems remain as safe and reliable as possible before, during and after extreme weather events.

In Hong Kong, more than 30% of CLP Power’s transmission network comprises overhead lines, which are more susceptible to adverse weather, lightning strikes and external interferences such as fallen trees that could affect power supply reliability. CLP Power has stepped up inspections of the power supply equipment in the network ahead of the typhoon season, using helicopters and drones to examine transmission towers and overhead cables and pruning trees that may potentially interfere with overhead lines. Floodgates have been installed at substations which are at risk of flooding during severe weather and emergency drills have been conducted to ensure staff’s readiness to respond swiftly and effectively to typhoon and storm impacts.

Extreme weather events could also result in voltage dips and even power interruptions, causing inconvenience to customers. CLP Power’s System Control Centre closely monitors grid operations throughout typhoons and storms, while emergency teams and additional personnel are dispatched promptly to restore power to affected customers wherever necessary.

CLP Power’s 24-hour Customer Service Hotline service has been bolstered to enhance responsiveness during extreme weather events. CLP Power also maintains close coordination with relevant government departments and communities across its supply area during typhoons or power incidents to facilitate timely responses and coordinate power restoration efforts.

Tailored to different geographies, asset types and locations, CLP has also implemented a range of measures in the Group’s value chain to strengthen its resilience to climate change. Examples of the Group's climate-related adaptation measures are summarised in the table on the next page.