What are the alternatives available to Hong Kong in structuring the electricity supply industry?

The latter part of the paper reviews the regulatory instruments for their applicability and acceptability in HK. They include rate-of-return regulation, performance-based regulation, competitive bidding and wholesale market competition. With the objective of keeping risks and uncertainties to a minimum, the paper devises strategies to pursue these instruments, allowing HK to improve its regulatory framework and at the same time prepare the industry for potential introduction of competition in the future.