There Will Be No Longer a Price of Riel 390 per Kilowatt/Hour

There Will Be No Longer a Price of Riel 390 per Kilowatt/Hour

The Mirror, Vol. 14, No. 649

“Phnom Penh: The price of electricity supplied by Electricité du Cambodge in Phnom Penh, Kandal, Kompong Speu, Takeo, Sihanoukville, and Kompong Cham of Riel 390 [approx. US$0.09] per kilowatt-hour for households will no longer exist. The cost for household costumers, who consume less than 50 kilowatt-hours per month, is Riel 610 per kilowatt-hour [approx. US$0.15]. The change of electricity costs and prices was discussed during a roundtable meeting organized by the Ministry of Industry, Mines, and Energy, and by the Ministry of Economy and Finance, at the Hotel Cambodiana on 25 January 2010, and officials involved from the 6 cities and provinces attended the meeting.

“A secretary of state of Industry, Mines, and Energy, Mr. Ith Prang, said during the meeting, organized to release a list of electricity prices for 2010 in Phnom Penh, Kandal, Kompong Speu, Takeo, Sihanoukville, and Kompong Cham, that the [old] list of electricity prices had been approved and used since 2006, because during that period, a barrel of oil was only US$50, whereas at present, it costs US$80; and the expense for electricity production is regularly higher than the income in the six cities and provinces. The increased expenses, which exceed the income collected, based on the set selling rates, made Electricité du Cambodge to lose as much as US$27 million in 2008 in Phnom Penh, Kandal, and Kompong Speu, requiring the government to review the list of electricity prices set in 2006 to be in line with the present situation.

“He added that according to the list of electricity costs in 2006 for household customers, if they consume less than 50 kilowatt-hours per month, they were charged only Riel 350 per kilowatt-hour which is half of the original production cost, making Electricité du Cambodge to face a continual loss, while the state does not pay for that loss. Now, the price of Riel 350 per kilowatt-hour was canceled for Phnom Penh and Kandal, but there is now a price of Riel 610 per kilowatt-hour if the citizens consume below 50 kilowatt-hours per month. A list of electricity prices for 2010 in Phnom Penh, and its selling rates for household customers will be adjusted.

“As for the supply of electricity by Electricité du Cambodge in Sihanoukville and Kompong Cham, Mr. Ith Prang said that the selling prices were also lower than the original production costs, but from 2010 on, the prices in the two provinces will be also be adjusted. The electricity prices for customers in the commercial and industrial sectors will be the same as those implemented in Phnom Penh, Kandal, and Kompong Speu. The electricity prices for commerce and industry are adjusted because the state stopped subsidizing valued-added tax payments (VAT) for Electricité du Cambodge.” Rasmei Kampuchea, Vol.18, #5109, 26.1.2010

This article was first published by The Mirror, [3] Vol. 14, No. 649 - Tuesday, 26.1.2010
Have a look at the last editorial - you can access it directly from the main page of The Mirror. [3]

Norbert Klein is the Editor of The Mirror [4] – The Mirror is a daily comprehensive summary and translation of the major Khmer language press - More about The Mirror [5]