District Cooling Services Ordinance


Published: 2015-07-07

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Cap 624 - District Cooling Services Ordinance 1

Chapter: 624 District Cooling Services Ordinance Gazette Number Version Date

Long title E.R. 2 of 2015 07/07/2015


An Ordinance to provide for matters relating to district cooling services provided by the Government, including the
imposition of charges for the services; and to provide for other related matters.


[27 March 2015]

(Enacting provision omitted—E.R. 2 of 2015)


(Originally 7 of 2015)

Part: 1 Preliminary 7 of 2015 27/03/2015




Section: 1 Short title 7 of 2015 27/03/2015


This Ordinance may be cited as the District Cooling Services Ordinance.

Section: 2 Interpretation 7 of 2015 27/03/2015


In this Ordinance—
actual cooling capacity (實際製冷量), in relation to a building to which district cooling services are provided by a

district cooling system, means the rate of heat removal, in the unit of kilowatt refrigeration (kWr), that is
actually demanded by the building for the system to generate the chilled water supplied to the building for the
services;

actual cooling energy consumption (實際耗冷量), in relation to a building to which district cooling services are
provided by a district cooling system, means the cooling energy, in the unit of kilowatt-hour refrigeration
(kWrh), that is actually used by the building for the system to generate the chilled water supplied to the building
for the services;

agreed starting date (協定開始日期), in relation to a building for which a person is an approved consumer, means
the intended starting date for the provision of district cooling services to the building as agreed by the Director
under section 4(4)(b)(ii) when approving the person as the consumer under section 4(4);

appeal board (上訴委員會) means a District Cooling Services Appeal Board appointed under section 25;
appeal board panel (上訴委員團) means the appeal board panel referred to in section 24;
approved consumer (獲准用户), in relation to a building, means a person who is approved under section 4(4) as the

consumer of district cooling services for the building;
authorized officer (獲授權人員) means a public officer authorized under section 19;
building (建築物) includes part of a building;
capacity charge (製冷量收費) means the capacity charge referred to in section 10(1)(a);
capacity overrun charge (超額製冷量收費) means the capacity overrun charge referred to in section 10(1)(b);
charge (收費) means a primary charge, surcharge or further surcharge;
consumption charge (耗冷量收費) means the consumption charge referred to in section 10(1)(c);
contract cooling capacity (合約製冷量), in relation to a building, means the contract cooling capacity as provided or

revised under section 5 for the building;
deposit (按金) means a deposit payable under section 13;
Director (署長) means the Director of Electrical and Mechanical Services;
district cooling services (區域供冷服務) means the supply of chilled water for air-conditioning purposes by a

district cooling system owned by the Government, and other related services;
district cooling system (區域供冷系統) means a system in which chilled water is supplied from one or more central



Cap 624 - District Cooling Services Ordinance 2

chiller plants to user buildings within the area served by the system through a network of pipes for air-
conditioning in the buildings;

due date (到期日)—see section 14;
estimated maximum cooling capacity (估計最高製冷量), in relation to a building to which district cooling services

are intended to be provided by a district cooling system, means an estimation of the maximum rate of heat
removal, in the unit of kilowatt refrigeration (kWr), that would be demanded by the building for the system to
generate the chilled water to be supplied to the building for the services;

fee (費用) means the fee for testing referred to in section 12(4);
function (職能) includes a power and a duty;
further surcharge (額外附加費) means the further surcharge referred to in section 10(2)(b);
improvement notice (敦促改善通知書) means an improvement notice issued or amended under section 18;
primary charge (基本收費) means a capacity charge, a capacity overrun charge or a consumption charge;
Secretary (局長) means the Secretary for the Environment;
specified form (指明表格) means a form specified by the Director under section 33;
surcharge (附加費) means the surcharge referred to in section 10(2)(a).

Section: 3 District cooling system in relation to which this Ordinance

applies
7 of 2015 27/03/2015



This Ordinance applies in relation to a district cooling system specified in Schedule 1.

Part: 2 Provision of District Cooling Services 7 of 2015 27/03/2015




Section: 4 Approval of consumer of district cooling services 7 of 2015 27/03/2015


(1) Any of the following persons may apply to the Director in a specified form for approval as the consumer of
district cooling services for a building—
(a) an owner or occupier of the building;
(b) a person responsible for the management of the building.

(2) The applicant must include in the specified form—
(a) the estimated maximum cooling capacity of the building;
(b) the intended starting date for the provision of district cooling services to the building; and
(c) an undertaking given by the applicant in accordance with subsection (3).

(3) The undertaking to be given by the applicant under subsection (2)(c) is an undertaking—
(a) to pay any charge, fee or deposit payable in respect of the district cooling services provided to the building

in accordance with this Ordinance;
(b) to be responsible for, and to bear the cost of, the design, provision, construction, installation and

maintenance of the facilities for the building to receive district cooling services as specified by the Director;
and

(c) to comply with any other conditions imposed by the Director relating to the provision or use of district
cooling services.

(4) The Director may approve the applicant as the consumer of district cooling services for a building if—
(a) the application complies with subsections (1) and (2); and
(b) the Director agrees to—

(i) the estimated maximum cooling capacity provided under subsection (2)(a) or otherwise by the
applicant; and

(ii) the intended starting date provided under subsection (2)(b) or otherwise by the applicant.
(5) If the Director approves the applicant as the consumer of district cooling services for a building under subsection

(4), the applicant becomes, or is taken to have become, the approved consumer for the building on the agreed
starting date.

(6) If the Director decides not to approve the applicant as the consumer of district cooling services for a building



Cap 624 - District Cooling Services Ordinance 3

under subsection (4), the Director must notify the applicant of the decision and the reasons for the decision.

Section: 5 Contract cooling capacity 7 of 2015 27/03/2015


(1) If the Director approves a person as the consumer of district cooling services for a building under section 4(4),
the estimated maximum cooling capacity agreed by the Director under section 4(4)(b)(i) becomes, or is taken to
have become, the contract cooling capacity of the building on the agreed starting date.

(2) The approved consumer for a building may revise the contract cooling capacity of the building only if the
Director has agreed to the revision.


Section: 6 Provision of district cooling services 7 of 2015 27/03/2015


(1) If the Director approves a person as the consumer of district cooling services for a building under section 4(4),
the Director may provide district cooling services to the building from—
(a) the agreed starting date; or
(b) a later date as proposed by the approved consumer and agreed by the Director.

(2) Nevertheless, the Director may refuse to provide district cooling services to a building from the date specified in
subsection (1) if the approved consumer for the building fails to fulfil, or is in breach of, the undertaking given
by the approved consumer under section 4(2)(c) in respect of the building.

(3) If the Director decides to refuse to provide district cooling services to a building under subsection (2), the
Director must notify the approved consumer for the building of the decision and the reasons for the decision.


Section: 7 Suspension or termination of district cooling services 7 of 2015 27/03/2015


(1) The Director may suspend or terminate district cooling services to a building if—
(a) there is no approved consumer for the building;
(b) the approved consumer for the building fails to fulfil, or is in breach of, the undertaking given by the

approved consumer under section 4(2)(c) in respect of the building;
(c) the approved consumer for the building fails to comply with a direction contained in an improvement

notice;
(d) in the Director’s opinion, work is required to be carried out for the installation, inspection, testing,

operation, maintenance, regulating, alteration, repair, replacement or removal of any part of the district
cooling system;

(e) in the Director’s opinion, work is required to be carried out in the event of an operational emergency
arising from a fault in the district cooling system;

(f) in the Director’s opinion, it is necessary to do so to protect life or property; or
(g) in the Director’s opinion, the behaviour of, or an installation of the building by, the approved consumer

for the building is jeopardizing or will jeopardize the operation or reliability of the district cooling services.
(2) If the Director decides to suspend or terminate district cooling services to a building under subsection (1)(b), (c),

(d), (e), (f) or (g), the Director must notify the approved consumer for the building of the decision and the
reasons for the decision.


Section: 8 Application for resumption of suspended district cooling

services
7 of 2015 27/03/2015



(1) If the Director has suspended district cooling services to a building under section 7(1)(b), (c), (d), (e), (f) or (g),
the approved consumer for the building may apply to the Director for the services to be resumed.

(2) On an application under subsection (1), the Director may resume district cooling services to the building if the
approved consumer demonstrates to the satisfaction of the Director that the ground on which the services were
suspended no longer exists.

(3) If the Director decides not to resume district cooling services to a building under subsection (2), the Director
must notify the approved consumer for the building of the decision and the reasons for the decision.





Cap 624 - District Cooling Services Ordinance 4

Section: 9 Ceasing to be approved as consumer of district cooling
services

7 of 2015 27/03/2015



(1) A person who is the approved consumer for a building may apply to the Director for the cessation of the
approval.

(2) The application must—
(a) state the intended date of the cessation; and
(b) be made at least 1 month before that date.

(3) The Director must allow the application if—
(a) the application complies with subsection (2); and
(b) all outstanding charges and fees payable by the approved consumer in respect of the district cooling

services provided to the building have been settled before the intended date of the cessation.
(4) If the Director allows the application, then, on the intended date of the cessation—

(a) the person ceases to be approved as the consumer of district cooling services for the building; and
(b) the undertaking given by the person under section 4(2)(c) in respect of the building ceases to be in force.

(5) If the Director decides to refuse the application, the Director must notify the person of the decision and the
reasons for the decision.


Part: 3 Charges for District Cooling Services 7 of 2015 27/03/2015




Section: 10 Charges for district cooling services 7 of 2015 27/03/2015


(1) The approved consumer for a building must pay to the Government the following charges for the district cooling
services provided to the building during a month—
(a) a capacity charge for the month, calculated according to section 2(1) and (3) of Schedule 2;
(b) if the highest actual cooling capacity of the building in the month exceeds the contract cooling capacity of

the building—a capacity overrun charge for the month, calculated according to section 2(2) and (3) of
Schedule 2; and

(c) a consumption charge for the month, calculated according to section 3 of Schedule 2.
(2) The approved consumer for a building must also pay to the Government the following charges for an

outstanding charge or fee—
(a) if a part of a primary charge or fee payable in respect of the building is not paid on or before its due date—a

surcharge for the unpaid primary charge or fee, calculated according to section 4(1) of Schedule 2; and
(b) if a part of a primary charge, fee or surcharge payable in respect of the building remains unpaid as at the

expiry of the period of 6 months beginning on the day after its due date—a further surcharge for the unpaid
primary charge, fee or surcharge, calculated according to section 4(2) of Schedule 2.

(3) The Director must inform the approved consumer for a building, by notice in writing, of the rates of primary
charge applicable to the building for each subject period.

(4) In addition, the Director must publicize the rates of primary charge applicable for each subject period by—
(a) publishing a notice that is accessible through the Internet; or
(b) placing a notice in any daily newspaper in circulation in Hong Kong.

(5) In this section—
rates of primary charge (基本收費額) means the capacity charge rate and consumption charge rate within the

meaning of section 5 of Schedule 2;
subject period (收費計算期) has the meaning given by section 5(2) of Schedule 2.

Section: 11 Determination of actual cooling capacity and actual

cooling energy consumption
7 of 2015 27/03/2015



(1) The actual cooling capacity and actual cooling energy consumption of a building are to be measured by a meter
owned by the Government and maintained by the Director in the building.

(2) However, if the Director is of the opinion that it is impracticable or inappropriate to rely on a measurement



Cap 624 - District Cooling Services Ordinance 5

under subsection (1) for a period, the actual cooling capacity and actual cooling energy consumption of the
building for that period may be determined in the manner the Director thinks fit.


Section: 12 Testing of meter 7 of 2015 27/03/2015


(1) An approved consumer for a building who doubts the accuracy of a meter that measures the actual cooling
capacity and actual cooling energy consumption of the building may apply to the Director in a specified form to
have the meter tested.

(2) After receiving the application, the Director must arrange for the meter to be tested in the manner the Director
thinks fit.

(3) A meter is regarded as registering correctly despite any inaccuracy found in its measurement if the inaccuracy
does not exceed 3% above or below the correct amount.

(4) If the result of the test is that the meter is registering correctly, the approved consumer must pay to the Director a
fee for testing in an amount equivalent to the cost involved in testing the meter.

(5) However, if the result is that the meter is not registering correctly, no fee for testing is payable by the approved
consumer.



Section: 13 Deposit 7 of 2015 27/03/2015


(1) The Director may require the approved consumer for a building to pay a deposit, in the amount and by the date
specified in a demand note issued to the approved consumer, to cover any charge or fee that is or may be payable
in respect of the building.

(2) Without limiting any other power under this Ordinance, the Director may apply a deposit paid in respect of a
building to the payment of a charge or fee payable in respect of the building.

(3) A deposit paid under this section—
(a) does not bear interest; and
(b) is not transferable.

(4) Subject to subsection (2), a deposit paid by a person as the approved consumer for a building must be refunded
to the person if—
(a) the person has ceased to be approved as the consumer of district cooling services for the building; and
(b) the Director is of the opinion that the deposit is no longer required for satisfying any liability owed by the

person as the approved consumer to the Government in connection with the services.

Section: 14 Due date for charge, fee and deposit 7 of 2015 27/03/2015


(1) The due date for a charge or fee is—
(a) for a primary charge or fee—the date by which the charge or fee must be paid as specified in a demand note

issued by the Director for the charge or fee;
(b) for a surcharge payable in respect of a primary charge or fee—the due date of the primary charge or fee;

and
(c) for a further surcharge payable in respect of a primary charge, fee or surcharge—the date on which the

period of 6 months beginning on the day after the due date of the primary charge, fee or surcharge expires.
(2) The due date for a deposit is the date by which the deposit must be paid as specified in a demand note issued for

the deposit under section 13(1).
(3) A charge, fee or deposit must be paid—

(a) for a primary charge, fee or deposit—on or before the due date; or
(b) for a surcharge or further surcharge—immediately after the due date.


Section: 15 Reduction etc. of charge, fee and deposit 7 of 2015 27/03/2015


(1) The Director may, in a particular case, reduce, waive or refund, in whole or in part, a charge or fee payable or
paid under this Ordinance.



Cap 624 - District Cooling Services Ordinance 6

(2) The Director may, on the application by the approved consumer for a building in a particular case, reduce, waive
or refund, in whole or in part, a deposit payable or paid in respect of the building.


Section: 16 Recovery of charge and fee 7 of 2015 27/03/2015


A charge or fee payable under this Ordinance is recoverable as a civil debt due to the Government.

Section: 17 Application of charge and fee received etc. 7 of 2015 27/03/2015


(1) Subject to the approval of the Financial Secretary, those parts of the charges and fees received by the Government
under this Ordinance that are required for either of the purposes specified in subsection (2) do not form part of
the general revenue and may be applied for those purposes.

(2) The purposes are—
(a) settling a payment that a person who has entered into an agreement with the Government for the

management, operation and maintenance of a district cooling system is entitled to receive under the
agreement; and

(b) settling any other expenses arising from or in connection with the provision of district cooling services.

Part: 4 Administration of District Cooling Services 7 of 2015 27/03/2015




Section: 18 Improvement notice 7 of 2015 27/03/2015


(1) The Director may issue an improvement notice to the approved consumer for a building if the Director is of the
opinion that the behaviour of, or an installation of the building by, the approved consumer is jeopardizing or will
jeopardize the operation or reliability of district cooling services.

(2) An improvement notice issued to an approved consumer must—
(a) state the Director’s opinion referred to in subsection (1);
(b) specify the approved consumer’s behaviour or installation that is jeopardizing or will jeopardize the

operation or reliability of district cooling services; and
(c) direct the approved consumer to remedy the behaviour or installation within the period specified in the

notice.
(3) The Director may amend or withdraw an improvement notice by issuing a notice to the approved consumer.
(4) An improvement notice issued to a person as the approved consumer for a building ceases to have effect if the

person is no longer the approved consumer for the building.
(5) Subsection (4) applies regardless of whether the person has complied with the direction contained in the

improvement notice.

Section: 19 Authorized officers 7 of 2015 27/03/2015


(1) The Director may, in writing, authorize a public officer attached to the Electrical and Mechanical Services
Department to be an authorized officer for the purposes of this Ordinance.

(2) An authorized officer must, if so requested, produce written proof of that officer’s authorization before
performing a function under this Ordinance.


Section: 20 Access for inspection and maintenance 7 of 2015 27/03/2015


(1) An authorized officer may, at all reasonable times, enter a building to do any or all of the following—
(a) to inspect the building for the purposes of verifying information that is needed in determining a charge

payable in respect of the building;
(b) to install, inspect, test, operate, maintain, regulate, alter, repair, replace or remove any part of the district

cooling system in the building;
(c) to suspend or terminate district cooling services to the building.



Cap 624 - District Cooling Services Ordinance 7

(2) Subsection (1) does not empower an authorized officer to enter a part of the building that is for residential use
without the consent of the occupier of that part.

(3) An authorized officer may exercise any power under this section with the assistance of any other person the
officer thinks fit.


Section: 21 Offences 7 of 2015 27/03/2015


(1) A person commits an offence if the person—
(a) obstructs an authorized officer, or a person assisting the officer under section 20(3), in the officer’s

performance of a function under this Ordinance; or
(b) tampers with a facility owned and maintained by the Government for any purpose relating to the provision

of district cooling services.
(2) A person who commits an offence under subsection (1) is liable on conviction to a fine at level 3 and to

imprisonment for 6 months.

Part: 5 Appeal 7 of 2015 27/03/2015




Section: 22 Appeal to appeal board 7 of 2015 27/03/2015


(1) A person who is aggrieved by any of the following decisions and direction made in respect of the person may
appeal to an appeal board against the decision or direction—
(a) a decision not to approve a person as the consumer of district cooling services for a building under section

4(4);
(b) a decision to refuse to provide district cooling services to a building under section 6(2);
(c) a decision to suspend or terminate district cooling services to a building under section 7(1)(b), (c), (d), (e),

(f) or (g);
(d) a decision not to resume district cooling services to a building under section 8(2) where the services were

suspended under section 7(1)(b), (c), (d), (e), (f) or (g);
(e) a decision to refuse an application for the cessation of the approval of a person as the consumer of district

cooling services for a building under section 9;
(f) a decision to issue or amend an improvement notice under section 18;
(g) a direction contained in an improvement notice.

(2) An appeal under subsection (1) against a decision or direction does not suspend the decision or direction unless
the Director decides otherwise.


Section: 23 How to lodge an appeal 7 of 2015 27/03/2015


(1) A person may lodge an appeal under section 22(1) by giving a notice of appeal to the Director.
(2) A notice of appeal must be given within—

(a) 14 days after the date on which the person is notified of the decision or direction appealed against; or
(b) a longer period that the Director may allow.

(3) A notice of appeal must—
(a) be in a specified form;
(b) be accompanied by a copy of any document on which the person intends to rely; and
(c) contain the particulars of any witness that the person intends to call at the hearing of the appeal.

(4) As soon as reasonably practicable after receiving a notice of appeal, the Director must deliver it to the Secretary.

Section: 24 Appeal board panel 7 of 2015 27/03/2015


(1) The Secretary is to appoint members to an appeal board panel consisting of the following numbers and
categories of members—
(a) not more than 4 members, each of whom is—



Cap 624 - District Cooling Services Ordinance 8

(i) a barrister qualified to practise as such under the Legal Practitioners Ordinance (Cap 159); or
(ii) a solicitor qualified to act as such under that Ordinance;

(b) not more than 4 members, each of whom is a corporate member of The Hong Kong Institution of Engineers
in one or more of the electrical, mechanical and building services disciplines;

(c) not more than 4 members, each of whom is a corporate member of The Hong Kong Institution of Engineers
in a discipline other than those mentioned in paragraph (b); and

(d) not more than 4 members, each of whom is not, in the Secretary’s opinion, from the engineering
profession.

(2) For an appointment under subsection (1)(b) or (c)—
(a) a person is ineligible if the person has less than 10 years’ experience of practice in the engineering

profession in Hong Kong; and
(b) if a person is a corporate member of The Hong Kong Institution of Engineers in more than one discipline,

the person’s membership is, for the purposes of subsections (1) and (6)(d), to be regarded as being only in
the discipline designated by the Secretary for the appointment.

(3) A public officer is ineligible for an appointment under subsection (1).
(4) A member of the appeal board panel is to be appointed for a term of 3 years and may be reappointed where each

reappointment is for a term of 3 years.
(5) A member of the appeal board panel may, at any time, resign from his or her office by issuing a notice in writing

to the Secretary.
(6) The Secretary may terminate the office of a member of the appeal board panel if the Secretary is satisfied that

the member—
(a) has become a public officer;
(b) has become bankrupt or has entered into a voluntary arrangement within the meaning of section 2 of the

Bankruptcy Ordinance (Cap 6) with the member’s creditors;
(c) is incapacitated by physical or mental illness;
(d) has ceased to be of the capacity by virtue of which the member was appointed; or
(e) is otherwise unable or unfit to perform the functions of a member of the appeal board panel.

(7) The Secretary must give notice in the Gazette of any appointment, reappointment, resignation or termination of
office under this section.


Section: 25 Appeal board 7 of 2015 27/03/2015


(1) Within 21 days after receiving a notice of appeal delivered under section 23(4), the Secretary must appoint from
among the members of the appeal board panel a District Cooling Services Appeal Board to hear the appeal.

(2) An appeal board is to consist of 5 members—
(a) one of whom is the Chairperson of the board, who must be appointed from the category of members

specified in section 24(1)(a); and
(b) the remaining 4 members must be appointed from all of the 3 categories of members specified in section

24(1)(b), (c) and (d).
(3) If a vacancy occurs in an appeal board before the hearing of the appeal begins, the Secretary must, as soon as

reasonably practicable, make an appointment from among the members of the appeal board panel to fill the
vacancy so that the board is composed in accordance with subsection (2).

(4) The members of an appeal board may be paid out of the general revenue any remuneration the Financial
Secretary determines.


Section: 26 Proceedings of appeal board 7 of 2015 27/03/2015


(1) The quorum for a meeting of an appeal board is 3 members, one of whom must be the Chairperson of the board.
(2) A question before an appeal board must be determined by a majority of those members present at the meeting at

which the question is to be determined.
(3) If there is an equality of votes in respect of a question before an appeal board, the Chairperson of the board has a

casting vote in addition to his or her original vote.
(4) An appeal board may perform any of its functions, and its proceedings are valid, despite—

(a) subject to section 28, a vacancy in the board; or



Cap 624 - District Cooling Services Ordinance 9

(b) a defect in the appointment or qualification of a person purporting to be a member of the board.
(5) In performing their functions under this Ordinance, the members of an appeal board have the same privileges

and immunities as a judge of the Court of First Instance has in civil proceedings in that Court.
(6) A person appearing before an appeal board as a witness, a party to an appeal or a representative of a party to an

appeal is entitled to the same privileges and immunities as he or she would have in civil proceedings in the Court
of First Instance.

(7) Subject to this Part, an appeal board may determine its own procedure.
(8) In this section—
meeting (會議) includes a meeting to hear an appeal.

Section: 27 Hearing of appeal 7 of 2015 27/03/2015


(1) The Chairperson of an appeal board must notify the appellant and the Director of the date, time and place of the
hearing of the appeal at least 14 days before the hearing.

(2) At the hearing of an appeal—
(a) the appellant may be represented by—

(i) a barrister or solicitor; or
(ii) (if the appellant is a body corporate) an individual authorized by the appellant; and

(b) the Director may be represented by—
(i) a barrister or solicitor; or
(ii) a public officer.

(3) An appeal board may engage a barrister or solicitor to attend the hearing of an appeal to advise it on any matter
relating to the appeal.

(4) The hearing of an appeal must be open to the public unless the appeal board determines that there is a good
reason for it to be held in camera.

(5) An appeal board may, by a notice signed by the Chairperson of the board and issued to a person—
(a) direct the person to attend before the board and to give evidence; or
(b) direct the person to produce documents.

(6) No person to whom a direction is given under subsection (5) is required to give any evidence, or produce any
document, that tends to incriminate the person.

(7) A person who fails to comply with a direction under subsection (5) commits an offence and is liable on
conviction to a fine at level 3.


Section: 28 Reappointment of appeal board in case of certain

vacancies
7 of 2015 27/03/2015



(1) Subsection (2) applies if, after the hearing of an appeal has begun, a vacancy occurs in an appeal board and—
(a) as a result, fewer than 3 members of the board remain in office; or
(b) the vacancy is that of the Chairperson of the board.

(2) On the occurrence of the vacancy—
(a) the appeal board is dissolved; and
(b) the Secretary must appoint an appeal board under section 25(1) as if the Secretary had received, on the date

on which the vacancy occurred, the notice of appeal delivered under section 23(4) in relation to the subject
matter of the appeal again.


Section: 29 Appeal board may authorize inspection of installation etc. 7 of 2015 27/03/2015


(1) If an appeal board reasonably believes that an installation or facility is relevant to the determination of an appeal,
the board may, by an authorization signed by the Chairperson of the board—
(a) authorize a person to inspect the installation or facility; and
(b) authorize the person to enter a building, except a part of the building that is for residential use, for the

purposes of the inspection.
(2) A person who obstructs a person authorized under subsection (1) in the inspection commits an offence and is



Cap 624 - District Cooling Services Ordinance 10

liable on conviction to a fine at level 3 and to imprisonment for 6 months.

Section: 30 Determination of appeal 7 of 2015 27/03/2015


(1) An appeal board may—
(a) confirm, vary or revoke the decision or direction appealed against; or
(b) substitute its own decision or direction for the decision or direction appealed against.

(2) An appeal board may make any order that it thinks fit with regard to the payment of—
(a) costs and expenses of the appeal proceedings; or
(b) costs and expenses of the Director or any other person in the proceedings.

(3) The costs and expenses ordered to be paid under subsection (2) are recoverable as a civil debt.
(4) An appeal board must issue to the appellant and the Director a notice of its determination and the reasons for the

determination.

Part: 6 Miscellaneous Matters 7 of 2015 27/03/2015




Section: 31 Presumptions and evidence in writing 7 of 2015 27/03/2015


(1) In any civil proceedings for the recovery of an unpaid charge or fee payable under this Ordinance, a document to
which this subsection applies is admissible in evidence on production without further proof.

(2) Subsection (1) applies to a document that—
(a) purports to be signed by the Director or an authorized officer; and
(b) states—

(i) the name of the person liable to pay the charge or fee;
(ii) the amount of the charge or fee;
(iii) the nature and other particulars of the charge or fee; and
(iv) that the charge or fee remains unpaid.

(3) If a document is admitted in evidence under subsection (1)—
(a) the court must, in the absence of evidence to the contrary, presume—

(i) that it was signed by the Director or the authorized officer as stated in the document;
(ii) that the facts referred to in subsection (2)(b) as stated in the document are true; and
(iii) that the record of the facts stated in the document was made and compiled at the time stated in it; and

(b) the document is evidence of all other matters contained in it.
(4) If a document is admitted in evidence under subsection (1), the court may, if it thinks fit, on its own motion or

on the application of a party to the proceedings—
(a) summon the person who signed the document; and
(b) examine that person as to the subject matter of the document.


Section: 32 Delegation by Director 7 of 2015 27/03/2015


The Director may, in writing, delegate any of his or her functions under this Ordinance to a public officer attached to
the Electrical and Mechanical Services Department.

Section: 33 Director may specify forms 7 of 2015 27/03/2015


(1) The Director may specify a form to be used for the purposes of any provision of this Ordinance.
(2) If the Director specifies a form under subsection (1), the Director must make copies of the form available—

(a) at the office of the Electrical and Mechanical Services Department during normal office hours; and
(b) in any other manner the Director thinks fit.





Cap 624 - District Cooling Services Ordinance 11

Section: 34 Secretary may amend Schedules 7 of 2015 27/03/2015


The Secretary may, by notice published in the Gazette, amend Schedule 1 or 2.

Schedule: 1 District Cooling System in relation to which this

Ordinance Applies
7 of 2015 27/03/2015



[sections 3 & 34]


1. Kai Tak District Cooling System, which serves the area that is delineated and edged red on Plan No. KM9180

signed by the Director of Lands on 12 August 2014 and deposited in the office of the Director of Electrical and
Mechanical Services.


Schedule: 2 Charges for District Cooling Services 7 of 2015 27/03/2015


[sections 10 & 34]

1. Calculation of charges for district cooling services

(1) This Schedule applies to the calculation of the following charges for a district cooling system—
(a) capacity charge and capacity overrun charge (see section 2 of this Schedule);
(b) consumption charge (see section 3 of this Schedule);
(c) surcharge and further surcharge (see section 4 of this Schedule).

(2) Section 5 of this Schedule sets out the following rates that are applicable to a building to which district
cooling services are provided by a district cooling system referred to in that section—
(a) capacity charge rate;
(b) consumption charge rate.


2. Capacity charge and capacity overrun charge
(1) The amount of capacity charge payable under section 10(1)(a) in respect of a building for a month is to be

calculated according to the following formula—


capacity charge = C × CR


where—
C = contract cooling capacity of the building; and
CR = capacity charge rate applicable to the building.

(2) The amount of capacity overrun charge, if payable under section 10(1)(b) in respect of a building for a
month, is to be calculated according to the following formula—


capacity overrun charge = (AC – C) × CR × 110%


where—
AC = highest actual cooling capacity of the building in the month;
C = contract cooling capacity of the building; and
CR = capacity charge rate applicable to the building.

(3) If district cooling services are provided to a building in a month for a period of less than 1 month, the
amount of capacity charge, and that of any capacity overrun charge, payable for that month are to be
calculated on a pro-rata basis according to the number of days for which the services are provided to the
building in that month.


3. Consumption charge
The amount of consumption charge payable under section 10(1)(c) in respect of a building for a month is to be

calculated according to the following formula—



Cap 624 - District Cooling Services Ordinance 12


consumption charge = AE × ER


where—
AE = actual cooling energy consumption of the building in the month; and
ER = consumption charge rate applicable to the building.


4. Surcharge and further surcharge
(1) The amount of surcharge, if payable under section 10(2)(a) in respect of a primary charge or fee, is to be

calculated according to the following formula—


surcharge = (PC – PCP) × 5%


where—
PC = the primary charge or fee that is payable as at the due date; and
PCP = the part of the primary charge or fee that has been paid, if any, as at the end of the due date.

(2) The amount of further surcharge, if payable under section 10(2)(b) in respect of a primary charge, fee or
surcharge, is to be calculated according to the following formula—


further surcharge = (PCS – PCSP) × 10%


where—
PCS = the primary charge, fee or surcharge that is payable as at the due date; and
PCSP = the part of the primary charge, fee or surcharge that has been paid, if any, as at the expiry of the

period of 6 months beginning on the day after the due date.


5. Capacity charge rate and consumption charge rate
(1) For a building to which district cooling services are provided by a district cooling system specified in

column 1 of the following table—
(a) the capacity charge rate applicable is specified in paragraph (a) in column 2 opposite that system; and
(b) the consumption charge rate applicable is specified in paragraph (b) in column 2 opposite that system.


Table


Column 1 Column 2

District cooling system Rate of charge
1. Kai Tak District Cooling

System
(a) Capacity charge rate (CR)—

(i) for the initial period—
CR = $112.11 per kilowatt refrigeration (kWr);

(ii) for each subject period—
CR = CRn-1 × (1 + CCPIr)
where—
CRn-1 =capacity charge rate applicable immediately before the subject period;

and
CCPIr=rate of change in CCPI applicable for the subject period.

(b) Consumption charge rate (ER)—
(i) for the initial period—

ER =$0.19 per kilowatt-hour refrigeration (kWrh);
(ii) for each subject period—

ER =ERn-1 × (1 + ETr)
where—
ERn-1 =consumption charge rate applicable immediately before the subject



Cap 624 - District Cooling Services Ordinance 13

period; and
ETr =rate of change in electricity tariff applicable for the subject period.





(2) In this section—
initial period (初始期間), for the Kai Tak District Cooling System, means the period beginning on the

commencement date* of this Ordinance up to and including the first 31 March that follows;
rate of change in CCPI (物價指數變動率), in relation to a subject period beginning in a year, means the

annual rate of change in the Composite Consumer Price Index recorded for the preceding year, after
removing the effects of all one-off relief measures of the Government, if any, as compiled and published by
the Commissioner for Census and Statistics;

rate of change in electricity tariff (電費變動率), in relation to a subject period beginning in a year, means the
annual rate of change in electricity tariff applied to the year, as announced by the supplier of electricity to
the district cooling system and publicized through the Internet by the Director;

subject period (收費計算期), for the Kai Tak District Cooling System, means any 12-month period beginning
on 1 April of a year up to and including 31 March in the following year that is after the initial period.

___________________________________________________________________
Note:
* Commencement date: 27 March 2015.

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