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REGULATION | Cesar Tordesillas, Macau
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Macau tariff clause impacted by power importation

CEM's Tariff Clause Adjustment reflects the mainland power importation price increase and the continuous upsurge of international fuel price.

The first quarter's Tariff A, made up of mainly residential users and small and medium enterprises supplied with low voltage, adjusted to 26 cents per KWh; Tariff B, C and D, mainly made up of entertainment enterprises supplied with medium voltage, adjusted to 29 cents per KWh according to the contractual calculated value.

Increase of mainland power importation price and overall 35 percent upsurge of international fuel price in last year are the main reasons leading to TCA increase. Facing the power operation challenge, CEM has been reducing the receipt of the TCA for several times to manage the electricity tariff rise. During 2008 and 2009 there were three TCA reductions, the deed had dragged down CEM revenues.

According to the calculation under the concession contract, the 1st quarter TCA of Tariff A should be 29 cents. Nevertheless, concerning the impact of a lifting TCA to the residential and SME customers, and fulfillment of its social responsibility, with Macao SAR Government support, CEM decided to reduce the receipt the TCA of Tariff A by 3 cents to 26 cents.

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