Government Spends USD 51 Million Subsidizing Electricity Tariffs

Phnom Penh– Back in 2017, a subsidization of USD 51 million on electricity tariffs was done to help low-income households have affordable electricity. The subsidization was under the government’s plans on electricity tariffs for 2015-2020.

The government of Cambodia has subsidized USD 51 million from state-owned Electricité du Cambodge’s revenue, said H.E. Suy Sem, the Minister of Mine and Energy. “All private electricity service providers both in rural and urban areas must offer the electricity tariff as set by the government, and the government will subsidize the full fee they lose from the offer to the private sector”, he added.

H.E. Suy Sem, the Minister of Mine and Energy

Households in Phnom Penh and Takhmao, which consume less than 50 kilowatts/hour per month in 2017, electricity prices were set at 610 riels/kWh. As for households that consume 51 to 200kWh, the cost was 710 riels/kWh, according to Electricity Authority Cambodia’s (EAC) annual report. Outside of Phnom Penh and Takhmao, electricity price was only 480 riels/kWh for those who used less than 10kWh/month.

From this point on, efforts to bring down the price of electricity by the EDC, and the Ministry of Mines and Energy will be done before the general election in July 2018, said Ty Norin, Chairman of EAC.

Government Spends $51 Million Subsidizing Electricity Tariffs