99.999% Customer Care. consecutive years 18 since 1997

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1 22 Customer Care At HK Electric, we understand that our success relies upon the support of our customers. We strive to earn their trust by providing worldclass supply reliability as well as professional, dedicated and responsive services that not only meet but exceed customer expectations. To accomplish this, we are guided by our corporate quality and customer services policies with the help of our quality management and asset management systems. In 2014, we migrated our asset management systems from the PAS 55-1 standard to the new ISO standard and obtained our first certificate on this new standard in May, which was among the first batch of its kind in Hong Kong. Just as importantly, at HK Electric, a strong spirit of care touches everything we do to make sure we place our customers firmly front and centre of our operations. ensuring a Reliable Electricity Supply encouraging Smart Use of Energy excelling in Customer Service consecutive years 18 since % supply reliability rating

2 Sustainability Report Ensuring a Reliable Electricity Supply Our supply reliability in 2014 continued to exceed %, a rating we have attained for 18 straight years since In addition, since 2009, the average duration of unplanned supply interruptions per customer per year has been under one minute. Such a high reliability ranks among the best in the world. To maintain this, we invest continuously and optimally in our people, processes, equipment and technologies. For instance, we monitor our electricity networks round-theclock, using advanced early-detection and diagnostic techniques to troubleshoot and ensure timely maintenance. In the event of incidents, our remote control facilities are ready to enable prompt restoration of power supply. In 2013, we improved our monitoring capacities even further by extending the advanced on-line partial discharge detection system to some of our 11 kv zone substations for early fault detection. In view of our proven result in 2014, we will extend this system to even more substations. Our preventive measures were also highly focused and effective. At Lamma Power Station, we managed to avoid boiler tube failures during the year by assessing the condition of our boiler tubes well in advance. Coupled with our other efforts in adopting a robust maintenance regime, Lamma Power Station s overall plant availability remained high at 88.4%. Beyond Lamma Power Station, we endeavour to be safe and reliable in all our operations. Our System Control Centre adopts a sophisticated Energy Management System and Distribution Management System to ensure safe, reliable and Facilities at Lamma Power Station are maintained regularly to ensure reliability. efficient operation of our network with a low-carbon footprint. In 2014, we started to upgrade these two systems with enhanced smart grid features, and we are delighted to report that they are on track for commissioning in We also continued to conduct backup drills, incorporated alongside routine reviews and enhancements to ensure the robustness of these systems. At the same time, we know that up-to-date information is just as important as sound infrastructure. Confronting a compact cityscape with congested infrastructure, we recognise the importance of providing useful information to contractors who are involved in road works, as we wish to avoid accidental cable damage that could lead to power interruptions and other undesired incidents. To achieve all this, we must co-operate with other utility companies and remain active in the Joint Utilities Policy Group to enhance communications and share best practices. For a detailed description of our efforts to ensure reliable power supply under the threats imposed by climate change, please refer to the Sustainable Operations chapter. Since 2009, the average duration of unplanned supply interruptions per customer per year 1minute Round-the-clock monitoring is performed by our System Control Centre to ensure supply reliability.

3 24 Customer Care Introducing Smart Power Fund to residential buildings on Hong Kong Island. Encouraging Smart Use of Energy Supporting Energy Conservation We are keen advocates of energy efficiency and are eager to support our customers in their conservation efforts. Last year brought considerable progress on this priority. In June 2014, we launched the HK Electric Smart Power Fund to subsidise, on a 50/50 matching basis, residential buildings to carry out energy efficiency enhancement works at the buildings common areas. The Fund was set up following the conclusion of the Mid Term Review on the Scheme of Control Agreement between HK Electric and the Government in HK Electric has been injecting into the Fund the energy efficiency incentive earned for outperforming the stipulated targets on a yearly basis and will do so until In 2014, the Fund approved HK$965,000 for six projects. We also target non-domestic customers, and for them we carried out over 50 free energy audits in 2014 to identify energy-saving opportunities at their business premises. Moreover, we collaborated with banks to provide nondomestic customers interest-subsidised loans to implement the energy initiatives identified in the energy audits under our Energy Efficiency Loan Scheme. These efforts require us to think out of the box and discover new ways to raise awareness of energy saving. To help our domestic customers understand their electricity usage patterns, we facilitate them to track their electricity consumption, monthly per capita electricity consumption and carbon dioxide emissions per unit of electricity consumed in their bills. In 2014, we presented the customer bill in a new format to make it easier to read and understand. We also provide a load profile enquiry service for our commercial customers. To help our domestic and commercial customers devise energy-saving plans by estimating their monthly and annual electricity charges, we feature on our website the interactive energy surveys Electricity@Home and Electricity@Office. By helping customers access useful information more easily, we believe they can reach better-informed decisions. more than free energy audits New format of our customer bill easier to read and understand.

4 Sustainability Report Promoting Electric Living Using electric appliances and equipment in everyday life adds much more than convenience and pleasure. Specifically, a research project conducted by the School of Public Health and Primary Care, the Chinese University of Hong Kong, on health risks associated with cooking in domestic kitchens found that electric cooking is more advantageous than gas cooking because it involves no naked flame and hence releases fewer air pollutants to indoor environments. In other words, electric cooking greatly reduces risks and hazards and makes indoor environments healthier to live in. Moreover, an induction cooker releases less waste heat and is more energy-efficient than a traditional gas cooker. From catering industry experience, such benefits are even more obvious for commercial kitchens where high-capacity and noisy air blowers and ventilators are required for gas cooking. A number of well-known restaurants in Hong Kong affirmed the findings, and they noted that electric cooking helps attract and retain chefs and other staff, and allows better food quality control. During the year, we championed the benefits of electric cooking, organising talks and promotional events on electric living. In one promotional activity themed Eco-Quality Home, a medical adviser from Hong Kong Asthma Society shared his insights on reducing respiratory infections while participants experienced the comfort of a zero-emission cooking environment. A mini-website and Facebook page were also created to share news and tips on creating an eco-quality home. We also supported the Green Cooking Competition which was held under the auspices of the all-electric Gourmet Master Chefs Cooking Competition to raise awareness of the health benefits of electric cooking. At the 15 th anniversary ceremony of Hong Kong Federation of Restaurants & Related Trades held in December, HK Electric was honoured with an award for our contributions to green catering. Our Home Management Centre ( HMC ) was also pivotal in promoting a low-carbon lifestyle through electric cooking. In 2014, the HMC conducted 920 cooking and special-interest courses for more than 11,000 students. Among the younger community, the HMC encouraged electric cooking by hosting the 16 th Secondary School Cooking Contest. The HMC Fans Club also surged in membership with more than 1,000 followers on Facebook. Eco-Quality Home promotes green and quality lifestyle through the use of electrical appliances. Celebrities share the fun of electric cooking at our Home Management Centre.

5 26 Customer Care Excelling in Customer Service Providing Exemplary Customer Service In 2014, we again achieved or even surpassed all 18 of our pledged customer service standards, a track record we have kept since introducing these standards more than a decade ago. Two of such standards, the average waiting times for telephone enquiries and counter services at our Customer Centre, for instance, were under nine seconds and 3.5 minutes respectively. We also received a record number of commendations for our service, indicating a high level of customer satisfaction. Customer service works best if both customers and those who serve them are well informed. To keep our colleagues abreast of the latest developments in the service industry, a Customer Service Symposium themed Continual Improvement on Diverse Services was organised in October Guest speakers from three renowned industry leaders shared their best practices in customer service management. We also cultivated special skills in 2014 as our counter staff learnt basic sign language to help serve hearing-impaired customers. Our customer service staff uses sign language to greet our hearingimpaired customers. Advisory service is offered to customers for building green and energy-efficient data centres in Hong Kong. Going further, we made inroads in easing procedures for our customers. Throughout the year we streamlined the application process to shorten the time it takes to connect customers' electricity supply. Our efforts were recognised by the SME business sector and trade industry. The Hong Kong General Chamber of Small and Medium Business named HK Electric as one of its Best SME's Partners, and the Hong Kong Small and Medium Enterprises Association named us as its Hong Kong Star Brands (Enterprise). Accolades also came from the Hong Kong Retail Management Association in its 2014 Mystery Shoppers Programme, including being named "Service Industry Leader" after out-performing all the 171 participating companies in the first assessment quarter as well as Service Retailers of the Year in the Retail (Services) Category for the fourth consecutive year. Unexpected social issues did not hinder our customer service in the least either. Despite road blockages in Admiralty and Causeway Bay in the last few months of 2014, the arrival times in attending emergency calls were not seriously affected thanks to our stand-by arrangements at strategic locations. The average waiting time for telephone callers to our Customer Emergency Service Centre in 2014 was 1.38 seconds, exceeding our pledged standard of nine seconds Customer Service Standards 優質服務標準 In 2014, we achieved or surpassed all 18 of our pledged customer service standards. Switch on to Perfection 多元服務全為你

6 Sustainability Report Our Customer Liaison Group ( CLG ) also plays a vital role in engaging customers and gauging their feedback. Comprising 50 members, including domestic customers, district councillors, community leaders and NGO representatives, the CLG facilitates the gathering of feedback and suggestions for continuous improvements. Twice in 2014, we met with members to share company updates and exchange views on services. Our ambassador takes a new customer through the application process. Enhancing Customer Communication Strong engagement with customers is key to maintaining a service that meets their needs. It is vital that customers feel they are being heard, and we listen carefully to their feedback and suggestions through various channels. These include after-service satisfaction surveys, We Meet on Friday sessions, Give-Me-5 customer survey as well as In-Touch Programme. In 2014, the average customer satisfaction index from after-service surveys was 4.5 on a five-point scale. Our enhanced customer communication extended to corporate customers as well. The Customer Care Manager Programme offers ambassador visits for corporate customers to provide them with one-stop service on technical and account matters. In 2014, 45 visits were made in total. A visit to our Marsh Road Station Building is arranged to enhance CLG members understanding of our operations. We also keep our customers informed of company updates with the quarterly newsletters HK Electric On-line. Customers can also login to the Account-On-Line service or register for e-bill with mobile devices using the HK Electric Low Carbon App. Offering Affordable Tariffs Demonstrating our responsiveness to customer needs, we honoured our pledge of freezing the net tariff for another year in 2015 as we strive to maintain the tariff level until the end of Our Super Saver Discount continues to encourage energy conservation among everyone, including the underprivileged. We also continue to partner with the Hong Kong Council of Social Service to grant concessionary tariffs to those in need: the elderly, the disabled, singleparent families and the unemployed. Under the scheme, eligible participants receive a 60% discount on the first 200 units of electricity they consume in a month, with both the deposit and minimum charges waived. Sharing Knowledge and Providing Professional Advice Experience sharing is yet another priority at HK Electric, and during the year we arranged technical seminars to discuss the latest developments in electrical installations with trade practitioners such as the Hong Kong & Kowloon Electrical Engineering & Appliances Trade Workers Union, the Hong Kong Electrical Contractors Association Limited, and the Hong Kong Electrical & Mechanical College. In addition, we were invited by the Electrical and Mechanical Services Department to share our expertise at its Annual Technical Seminar 2014 for the registered electrical workers. We also engage groups that need our professional advice, reaching out to the Incorporated Owners and Management Offices on the requirements relating to the Code of Practice for the Electricity (Wiring) Regulations to facilitate and expedite their additional load applications.