In an effort to attract bigger clients, Electricite du Cambodge is to propose price reduction for commercial users, government institutions and foreigners, according to officials of the public utility.
Commercial users will likely see a 50-riel reduction on the use of energy at each kilowatt hour and government institutions and foreigners would pay 100 riel less than the current rates, according to a plan approved by the EdC Board of Executives on Saturday. Rates for the majority of Cambodian residents would remain the same, but a small portion of the domestic users would be required to pay slightly higher prices, officials said.
Klaut Randy, EdC board chairman and secretary of state for the Industry Ministry, said Sunday that the plan would encourage industries and commercial operations to use more energy from the public utility, instead of their own fuel-powered generators.
“We would like to attract more big consumers with new rates,” said Klaut Randy.
The plan will soon be submitted to the ministry for approval and then to the Council of Ministers, he added.
According to the proposed plan, industry-commercial users from hoteilers to manufacturers would pay 450 riel to 600 riel per kilowatt hour, depending on types of voltage-level connection. Industrial bulk consumers who use medium voltage connection would see the cheapest rate, an EdC top official said.
Rates for government institutions and foreign residents would be reduced to 700 riel per kilowatt hour, according to the plan. But Cambodian residents would pay 350 riels per kilowatt hour, the same rate since 1993, until they consume 300 kilowatts a month, said an EdC top official on a condition of anonymity. If the domestic users consume more than 300 kilowatts per month, they must pay 560 riel per kilowatt hour, or the real cost of electricity, for the rest of usage, the official said.
According to the public utility, about 80,000 customers among 85,000 are domestic residents who consume half of the all energy used.
Only 400 domestic residents fall in the category of bulk users who should pay 560 riel after the ceiling, officials said.
“EdC is taking risks to lose revenues in order to make the rates more attractive for the markets,” the top official maintained.
Roger Tan, general-secretary for the Garment Manufacturers Association of Cambodia, said reducing the rates would bring some benefits to his industry.
However, not all businesses and industries are satisfied with the proposal.
Sorn Sokna, vice president of Sokimex, said that energy tariff should be reversed—bulk users pay less than those who consume little. Otherwise, he said, businesses would not switch to the public utility from their own generators.
