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Law on Electricity_010202

Published: 2011 Sep 19

KINGDOM OF CAMBODIA
NATION RELIGION KING

ELECTRICITY LAW
OF
THE KINGDOM OF CAMBODIA

Promulgated by ROYAL DECREE No. NS/RKM/0201/03 dated February 02,
2001

ROYAL DECREE
I,
PREAHBATH SAMDECH PREAH NORODOM SIHANOUK REACH
HARIVONG UPHATO SOCHEAT VISOTHIPONG
AKAMOHABORASRAT
NIKARODOM THAMMIK MOHAREACHEATHIREACH
BOROMMANEAT BOROMMABOPIT PREAH CHAU KRONG
KAMPUCHEA THIPDEY

-Seen the Constitution of the Kingdom of Cambodia;
-Seen the Royal KRAM No. NS/RKM/0399/01 of March 08, 1999 pr omulgating the
amendment of article 11, 12, 13, 18, 22, 24, 26, 28, 30, 34, 51, 90, 91, 93 and all
articles of chapter 8 through 14 of the Constitution of Kingdom of Cambodia;
– Seen the Royal KRET No. NS/RKT/1198/72 of November 30, 1998 on the
Appointment  of the Royal Government
– Seen the Royal KRAM No. 02/NS/94 of July 20, 1994 promulgating the law for
establishment of the Council of Ministers
-Seen Royal KRAM No.NS/RKM/0196/05 of January 24, 1996 promulgating the
law for establishment of the Ministry of Industry, Mines and Energy
-Pursuant to the proposal of the Prime Minister and the Minister of Industry, Mines
and Energy

HEREBY PROMULGATED

The Electricity Law of the Kingdom of Cambodia, which was adopted by National
Assembly on November 06, 2000 at th e plenary session No.5 of term 2, agreed by the
Senate on the form and all context of the law on December 13, 2000 at the plenary session
No.4 of term 1 and announced on January 15, 2001 by the Constitution Council, be
consistent with the Constitution. This law is as follows:

ELECTRICITY LAW
OF
THE KINGDOM OF CAMBODIA

CHAPTER I:
GENERAL PROVISIONS

ARTICLE 1:
The purpose of this law is to govern and to prepare a framework for, the electric power
supply and services throughout the Kingdom of Cambodia.
This law covers all activities related to the supply, the provision of services and uses of
electricity and other associated activities of power sector.
The electricity in this law shall  mean the electrical energy or the capacity for the
production of electrical energy.
The electrical power service in this law shall mean the generation, transmission and
distribution of electricity and other additional or miscellaneous services related to t he
above services.
ARTICLE 2:
This law aims to establish:
(a)    The principles for operations in the electric power industry and the activities of
licensees in the provision of electric power services;
(b)    The favorable conditions for the investments in, and the commercial operation of,
the electric power industry;
(c)    The basis for the regulation of the supply of electric power services throughout the
Kingdom of Cambodia;
(d)    The principles for:
(i) The protection of the rights of consumers to receive the reliable and adequate
supply of electric power services at reasonable cost,
(ii) The promotion of private ownership on the facilities for providing electric
power services, and
(iii) The establishment of competition wherever feasible within the electric power
sector;
(e)  The principles for granting the rights and obligations, and penalizing the suppliers
and consumers of electricity and also the public and land owners in relation to
electricity generation and supply facilities; and
(f)   The Electricity Authority of Cambodia for regulating the electric power services.
The consumer in this law shall mean a person or his successor that purchases or receives
electricity for consumption and not for delivery or resale to others.

CHAPTER II:
FRAMEWORK OF THE ELECTRIC POWER SUPPLY AND SERVICES

ARTICLE 3:
The Ministry of Industry, Mines and Energy shall be responsible for setting and
administrating the government policies, strategies and planning in the power sector.
The Electricity Authority of Cambodia shall ensure that the provision of services and the
use of electricity shall be performed efficiently, qualitatively, sustainably and in a
transparent manner.
ARTICLE 4:
The Ministry of Industry, Mines and Energy shall ensure the communication on a regular
basis with the Authority and shall provide to the Authority the information on policies,
strategies, planning of power sector and its decisions on:  –   Investments in the rehabilitation and development of power sector in the
short, medium and long term;
–   Restructuring, private sector participation and privatization of Public
Utilities;
–   Promotion of the use of indigenous energy resources in the generation of
electricity;
–  Planning and agreements on the export and import of electricity;
–   Subsidies to speci fic classes of customers and priorities regarding
consumers of electricity;

–   Promotion of efficiency in generation, transmission, distribution and
consumption of electricity and action taken to create a Comprehensive
Electricity Conservation Program for Cambodia; and
–   Electricity sector emergency and energy security strategies.
ARTICLE 5:
Each power service supplier is required to have a license issued by the Electricity
Authority of Cambodia, and shall abide by provision of this law and those of its  license,
regulation and procedures of Electricity Authority of Cambodia, and the requirements of
the laws of the Kingdom of Cambodia.
While making decision on issuing licenses, the Authority shall take into consideration the
government policies, strategies and planning in power sector which aim to reduce the long
and short run marginal cost of supplying electricity throughout the Kingdom of Cambodia,
and decisions set out in Article 4 of this law, and shall ensure the public interest.
The Electricity Authority of Cambodia shall ensure that the licensees shall use the standard
related to technical operation, safety and environment, which issued and published by the
Ministry of industry, Mines and Energy.
License in this law shall mean a license for the provis ion of an electric power service.
Licensee in this law shall mean a person to whom the Authority has granted a legal and
valid license under this law.

CHAPTER III
ESTABLISHMENT OF THE ELECTRICITY AUTHORITY OF CAMBODIA

ARTICLE 6:
The Electricity Authority of Cambodia is a legal public entity, being granted the right from
the Royal Government to be an autonomous agency to regulate the electricity services and
to govern the relation between the delivery, receiving and use of electricity.

ARTICLE 7:
The Electricity Authority of Cambodia shall have the following duties:
(a)    To issue, revise, suspend, revoke or deny the licenses for the supply of electricity
services as provided in article 29 of this Law;
(b)    To approve tariff rates and charges and terms and conditions of electric power
services of licensees, except where the Authority consider those rates or charges
and terms and conditions are established pursuant to a competitive, market-based
process;
(c)    To order to implement guidance procedures and sta ndards for investment programs
by licensees; (d)    To review the financial activities and corporate organization structure of licensees
to the extent that these activities and organization directly affect the operation of
the power sector and the efficiency  of electricity supply;
(e)  To approve and enforce the performance standards for licensees;
(f)   To evaluate and resolve consumer complaints and contract disputes involving
licensees, to the extent that the complaints and disputes relate to the violation o f the
conditions of license;
(g)        To approve and enforce a uniform system of accounts for all licensees;

(h)  To prepare and publish reports of power sector and relevant information received
from licensees for the benefit of the Government and the public interest;
(i)   To prescribe fees applicable to licensees;
(j)   To determine the procedures for informing the public about affairs within its duties,
in order to ensure that the Electricity Authority of Cambodia complies with the
principle of transparency as set forth  in Article 3 of this law;
(k)    To issue rules and regulations and to make appropriate orders, and to issue
temporary and permanent injunction for electric power services;
(l)   To impose monetary penalty, disconnect power supply, suspend or revoke the
license fo r the violations of this Law, standards and regulations of the Electricity
Authority of Cambodia;
(m)   To require the electric power services and the customers to obey the rules relating
to the national energy security, economic, environment and other Governmen t
policies;
(n)  To perform any other function incidental or consequential to any of the duties as
describes above; and
(o)    To establish the terms and conditions of employment of the officers or employees
including expert/advisors of Electricity Authority of Cambodia.
ARTICLE 8:
The Electricity Authority of Cambodia shall have a Secretariat and Departments.
The Secretariat headed by one Executive Director shall be established for supporting the
administrative and technical tasks and controlling the various expertise departments. The
organization and functioning of the Secretariat shall be determined in the internal rule of
the Authority.
ARTICLE 9:
The Electricity Authority of Cambodia shall consist of three members, including the
Chairman. The chairman and members shall be designated and proposed by the Prime
Minister and shall be appointed by the Royal KRET. Each member shall have a three year
term, which shall be staggered except for the initial term, as described in Article 72 of this
law.
No member shall be appointed to serve in the Authority for more than two (2) terms.
Within two (2) years after the completion of their term, neither the chairman nor any
member shall enter into the employment or have any advisory or consulting relationship
with any licensee.
ARTICLE 10:
An individual to be eligible to serve as a chairman or members of the Electricity Authority
of Cambodia shall fulfill the following conditions:   -a Cambodian born citizen and a qualified voter in the Kingdom of Cambodia,
-never been convicted by a criminal sentence,
-having university degree in electrical engineering, law, economics, accounting,
finance or other engineering related to the electricity sector, which are recognized
by competent institutions,
– having an experience of at  least ten (10) years; and
-be a competent, neat and virtue person.
This designation for appointment is not based on political affiliation.
ARTICLE 11:
The members of Electricity Authority of Cambodia shall have full time employment at the
Authority and shall not have any other employment nor accept any payment for any other
activities.
ARTICLE 12:
All members or employees of the Authority shall not directly own any securities of, or
have any economic interest in, or hold any position with any licensee  or applicant for a
license but can be a customer of any licensee.
Licensee or any person acting on his/her behalf is prohibited to offer any gift or gratuity,
different from that generally applicable to the public, to any member and employee of the
Authori ty. Member or employee of the Authority is prohibited to accept, any gift or
gratuity, different from that generally applicable to the public, from any licensee or any
person acting on his/her.
During their term, neither the Chairman nor any Member, nor hi s spouse nor children, shall
enter into the employ of, seek to enter into the employ of, hold any official, advisory or
consulting role with, own stock or bonds of, or have any pecuniary interest in any licensee
under the Law or with any person engaged in  supplying electrical power services or to any
related undertaking.
ARTICLE 13:
The function of members of the Authority are incompatible with those of a civil servant, a
member of Constitutional Council, a member of Senate, a member of National Assembly, a
member of leader group of any political party, or an adviser of any Government Institution,
or a member of the Royal Government.
When an individual having a position as stated above is appointed as a member of the
Authority, he/she shall temporarily resign or suspend from the above position or
membership, for the period of his/her office term.
ARTICLE 14:
The position of a member of the Authority shall fall vacant, when that member:
1 – dies,
2 –  resigns,
3 – retires,
4 – is convicted by the criminal  offence,
5 –  loses the right to vote,
6 – is found to be mental or physical incapacity,
7  – is found to have committed a serious violation of any provisions stipulated in
Article 11, 12 and 13,
8  – is found to have seriously neglected and no responsibility in the performance of
duties;
9  – is found to have committed a grave misdemeanor in relation to his
responsibilities; or 10 – abandons the duties;
If a member is found to be in the case 5, 6, 7, 8, 9 or 10 of article 14 the Prime Minister
may decide to suspend the said member from duties and shall refer the case to the
competent tribunal. In that case, the Prime Minister shall appoint temporary member to
perform the job during the suspension period.
ARTICLE 15:
Whenever a vacancy in the Authority occurs prior to the expiration of a term, the Prime
Minister shall designate new member to fulfill the former member’s term. This new
member shall be appointed by royal KRET. This replacement shall not count in the
numbers of full term as stipulated in Article  9 of this Law.
ARTICLE 16:
The salary allowances and other interests of members of Electricity Authority of Cambodia
shall be determined by the Government. The chairman’s position shall be equivalent to the
rank of a Secretary of State, the position of  other members shall be equivalent to Under
Secretary of State.
The members of the Authority shall retire from office when they attain the age of sixty
(60).  In case of retirement before the term expired, the Prime Minister may permit this
member to continue his/her duties until the expired date of his/her term as necessary.
The chairman or other members may at any time request to resign from their office by
giving at least one (1) month written notice to the Prime Minister.
ARTICLE 17:
The chairman shall  not be removed from the position of Chairman of the Authority during
his/her term in office except for the reasons given in Article 14 of this Law.
ARTICLE 18:
The chairman of the Authority shall be responsible for:
–  managing the Authority
–  presiding over the meetings of the Authority; and
–   ensuring the publishing and implementation of all Authority’s decisions.
In addition, the Authority may delegate to the Chairman any of its powers, duties, or
functions, except:
–  the power to issue, reject, amend, or revoke licenses
–  the power to reject applications for a license or modification of a license;
–  the power to set, approve, disapprove, or revise the tariffs or the investment
programs and the power acquisition program;
–  the power to issue, revise, or repeal the Authority regulations; or
–  the power to decide on an appeal of the public.
Any aggrieved party or person may make appeals to the Authority in such cases within
thirty (30) days of promulgation of the ruling.
The chairman of the Authority may  designate in writing to one of the other members to
fulfill the duties of the Chairman in his/her absence.
ARTICLE  19:
The chairman of the Authority, in consultation with other members, shall appoint all
employees and shall hire other experts as may be n ecessary for the proper discharge of the
Authority’s duties. Employees and experts of the Authority shall abide by the Labor Law.

CHAPTER IV
FUNCTIONING OF ELECTRICITY AUTHORITY OF CAMBODIA

ARTICLE 20: The Electricity Authority of Cambodia shall adopt and declare the rules for controlling
meetings between its members or employees and any party to establish a tariff or to grant a
license. The rules shall determine the objective, the date and time, the place and the
meeting proceeding for giving an opportunity to the interested persons to participate.
ARTICLE 21:
All members of the Authority shall have the right to vote on all matters requiring the
decisions of the Authority. These decisions of the Authority will be based on the majority
vote.
Two members shall constitute a quorum of the Authority to make decision.

All members of the Authority shall be given notice of the date and time, place and
objective of the session in which the decision will be voted on.
ARTICLE 22:
The sessions of the Electricity Authority of Cambodia for hearing of any complaint shall
be public. The Authority’s decisions, with its reasons, shall be published as soon as the
decisions are made unless the Authority has the reasonable causes and decides to delay the
publication.
The Authority shall keep a record of all proceedings, orders, findings, and judgments, and
to preserve all records, documents, and files of the Authority.
All orders, findings, judgments, records and other documents shall be open to public
examination in the offices of the Authority; except provided that the Authority shall adopt
appropriate rules to ensure confidential information received by Authority remains
confidential, whenever Authority determines this confidentiality is necessary.

Except as otherwise expressly provided in this Law, no outside authority or agency of the
Government shall interfere in the decisions of the Authority.

ARTICLE 23:
Before promulgating any general order, or any rule or regulation, the Authority shall give
reasonable notice of i ts contents and shall give an opportunity to interested legal
persons and public to present their evidence and provide their opinion. All such orders,
rules, and regulations shall be available to the public.
Before the Authority makes any finding, order, o r judgment against any legal person or
individual, the Authority shall give such legal person or individual reasonable notice of the
time and place at which this legal person or individual has an opportunity to give evidence
and opinion.
ARTICLE 24:
After the Authority issues a final decision, each affected institution and party shall have the
right of appeal to the Courts of the Kingdom of Cambodia. This appeal shall be filed
within three (3) months from the date of the final decision.
ARTICLE 25:
The Authority shall be jointly liable for the consequences resulting from the performance
of functions by the members or employees of Authority pursuant to the provisions of this
Law and any implementing Sub-Decrees and regulations.
ARTICLE 26:
The Authority shal l determine the salary, and other remunerations of its officers and
employees.
The Authority shall establish a budget of its operating expenses for each financial year that
sets forth all the Authority’s expected revenues and expenses. The budget shall clearly state
the proposed license fees for the financial year, together with the method of calculating the license fees, and the salaries and other remunerations entitlements to be paid to each of the
members and senior staff of the Authority. The Authority  shall submit this budget to the
Government for review and approval.
ARTICLE 27:
The Authority shall have an autonomous budget for their operation. This budget shall come
through fees paid to the Authority by applicants and licensees. The fees shall be
determined by the Authority. This fee is called the license fee.
The license fees shall be deposited in an account of a state bank of the Kingdom of
Cambodia. Only the Authority shall have the right to use this fund.
The maximum license fees shall be determined by Sub-Decree.
Any balance funds in the Authority account at the end of a year shall be carried forward to
the next year budget.
Any shortfall and surplus in annual budget of the Authority as stated above shall be
adjusted through the license fees at the next year budget.
In case that shortfall in budget cannot be met even after maximum readjustment, the
Authority is still unable to meet its operation expenses and repayment loan with interest,
the Authority shall request to the Royal Government for rev iewing and approving the new
maximum license fees.
The financial and accounting operation of the Authority shall be performed in accordance
with the public accounting system.
ARTICLE 28:
The Authority shall prepare its annual financial statement not later than one month after the
end of each financial year.
Each annual financial statement, together with the accounting books of the Authority and
related records, shall be audited by auditor and inspected by the National Audit Authority.
Within 1 (one) month a fter auditing, the Authority shall submit all reports to the Prime
Minister for approval, and shall publish the approved reports to the public.

CHAPTER V
TYPE OF LICENSES

ARTICLE 29:
The licenses under empowerment of the Authority as stipulated in Article 7(a) of this law
shall be as follows:
1-  Generation License
2-  Transmission License
3-  Dispatch License
4-  Distribution License
5-  Bulk Sale License
6-  Retail License
7-  Subcontract License
8-  Consolidate License
The provision of electric power service under any type of license as stated above shall be
operated in form of company registered according to the rule in force. The provision of
electric power service under generation, distribution and/or retail licenses may be operated
in form of an individual,  provided that this provision of services shall be in the small size
as determined by the Authority.
ARTICLE 30:
The Generation Licensee shall have the right to generate electricity power from
specifically fixed identified generation facilities. The Gener ation Licensee right in this law is to own, operate and manage or control the generation facilities for generating electricity
for sale and not solely for own consumption.
The granting of Generation License shall be for the purpose of promoting the safe, reliable,
and economic efficient operation of the national transmission grid or distribution grid and
the connection facilities.
The validity of the generation license shall generally be for the expected useful life of the
generation facility except in the  case the Power Purchaser Agreement has a shorter term.
The generation license can be revoked under this Law.
ARTICLE 31:
The Transmission Licensee shall have the right to provide the transmission service. The
transmission licensee right in this law is to  own operate and manage the power
transmission facilities for transferring and delivering or selling the electricity in bulk.
There shall be two types of transmission: National Transmission License and  Special
Purpose Transmission License.
ARTICLE 32:
The  National Transmission License  shall be issued to the state power transmission
company that has the right to provide the transmission service for delivering the electric
power to the distribution companies and bulk power consumers throughout the Kingdom of
Cambodia, except in the territory served by the isolated systems as stipulated in Article 35
paragraph 1 and subject to the rights of special purpose licensees under Article 33 of this
Law.
The license issued under this Article may be of an indefinite term,  subject to revocation
under this Law.
ARTICLE 33:
The Special Purpose Transmission Licensee  shall have the right  to construct, own and/or
operate the specifically fixed identified transmission facilities in Cambodia that have the
specified purpose and ens ure the public interest. The principles and conditions for issuing
the Special Purpose Transmission Licenses shall be determined by the government
regulation.
The validity of Special Purpose Transmission Licenses may have the indefinite term or
limited to the useful life of that particular transmission facilities. The  Special Purpose
Transmission License is subject to revocation under this Law.
ARTICLE 34:
The Distribution Licensee shall have the right  to provide the electricity distribution
services in a  determined contiguous territory.  The right  to provide the electricity
distribution services under this law is the right of ownership, operation and managing or
controlling the distribution facilities for supplying and selling the electricity to the
customers. The ownership, operation and managing or controlling the distribution facilities
in private territory for their own use is not considered as the provision of distribution
service.
The license issued under this Article may be of an indefinite term, subject to revocation
under this Law.
ARTICLE 35:
The Consolidate License  is a license, which may be the combination of some or all types
of licenses stated in paragraph 1 to 7 of Article 29 of this Law.
The consolidated license can be issued to EDC and to the isolated systems to grant the
right to generate, transmit, dispatch, distribute and sale the electric power to consumers. If
a consolidated licensee intends to add new generation facilities, then he must apply for
generation license for each new generation facility. For the purposes of encouraging efficiency and competition where this will contribute the
least long run marginal cost of electricity, the Authority shall include the provision in this
license for disaggregating the generation, transmission a nd distribution services in the
service coverage territory of licensee.
ARTICLE 36:
The Electricity  dispatch Licensee shall have the right to control, manage and operate the
dispatch facilities for facilitating the delivery and receiving the electricity  from the
generation, transmission and distribution systems.
Electricity Dispatch License shall prescribe the regulation to ensure that the operation of
generation, transmission and distribution systems under its dispatch control is in the safe,
reliable and efficient condition.
Electricity Authority may issue the dispatch license to any person for providing dispatch
service on a power system, provided that:
1.  That power system has the transmission line connected to many important
distribution areas,
2.  The genera tion, transmission and distribution services have been separated from
each other,
3.  The electricity dispatch service is big enough that Authority can authorize to
provide separated service.
The license issued under this Article may be of an indefinite term and subject to revocation
under this Law.
ARTICLE 37:
The Bulk Sale Licensee shall have the right to buy the electricity from any Generation
Licensees or from the power systems of neighboring country for sale to Distribution
Licensees or to the large customers in one connected power system.
The Authority may issue the Bulk Sale License to any person for providing this service
when all conditions defined in the government energy policy for opening the bulk market
has been fulfilled.
The bulk market under this law is a market where the producers can sell electricity to many
buyers and where the transmission service has been separated from the generation services
and became the service provider for wheeling charge. In the bulk market the market
management and the transmission operation has been separated.
The license issued under this Article shall be of a definite term and subject to revocation
under this Law.
ARTICLE 38:
In issuing consolidate licenses, the Authority shall consider long term planning and th e
objectives of Government policy to reduce long run marginal cost in the long term supply
of electricity to consumers, establish a national grid and progressively expand this grid
throughout Kingdom of Cambodia.
ARTICLE 39:
The Retail Licensee shall have the right to engage in the sale of electric power to
consumers. Each retail license shall apply to a contiguous service territory.
To obtain a retail license, the applicant shall have a subcontract agreement with electric
utility licensed by Authority and this contract shall be submitted to the Authority for
reviewing and approval.
The electricity sold to consumers by retail licensee shall be purchased from a licensed
electric utility to supply in the applicable geographic territory, until such time when  the
Authority permits to purchase from other suppliers of electric power consistent with
national energy policy. All licenses issued under this Article shall have a maximum five (5) year term and can be
extended and revoked under this Law.
ARTICLE 40:
The  Subcontract Licensee shall have the right to supply of electric power services
according to the subcontract agreement with existing licensee. Subcontract Licenses under
this Article shall include all applicable conditions, and such additional license condi tions
as the Authority may consider in the public interest.
The Authority may issue the regulations regarding the activities and operation of
subcontract agreement when the Authority concludes that is in the public interest.

CHAPTER VI:
LICENSING OF ELECTRIC POWER UTILITIES

ARTICLE 41:
No person may operate as an electric power utility or supply electric power services except
he/she has performed under and in accordance with the terms of a valid license issued by
the Authority.
Licenses shall be issued  only to persons whose competence satisfies the requirement of
Authority to operate as an electric power utility and to satisfy the service obligations and
conditions included in the license. Licensees shall not be required to provide electric power
service s, the cost of which can not be recovered through electricity tariffs, except to the
extent specific funds are provided to subsidies consumers and the licensee is agreeable to
this arrangement.
ARTICLE 42:
Each Licensee must comply with all conditions set  forth in its License, the rules and
regulations adopted by the Authority, and the laws of the Kingdom of Cambodia,
including laws regarding environmental protection, safety, health, taxes, and electric
system performance, protection and standards.
Licensees shall use the resources and provide generation, transmission, dispatch, or
distribution services, as applicable, at least cost and in accordance with prudent utility
practices.
In accordance with Authority regulations, each Licensee shall submit to the Authority, with
a copy to the Ministry of Industry, Mines and Energy, and make available to the public:
(i)   An annual summary report of Licensee’s activities for the past year;
(ii)  An annual work plan for the following year describing the Licensee’s
antici pated activities; and
(iii)   Such other reports, statements, and information as the Authority by
regulation, determines to be necessary and appropriate.
Each Licensee who holds a Generation License shall submit to the Authority for reviewing
and approval the reports, statements, and information that the Authority, by regulation,
deems necessary for the safe and reliable operation of the Transmission Grid and
connection facilities.
ARTICLE 43:
Before issuing of any License, or reinstating of a suspended License, the Authority may
require a bond or other form of financial security necessary to ensure satisfaction of service
obligations pursuant to this Law and the conditions of the License, including the payment
of License Fees.
ARTICLE 44:
The Authority shall  establish the conditions on the issuing, amendment, suspension
revocation or denying of licenses and its application procedures in according to this law. ARTICLE 45:
No licensee, other than a state owned licensee, may hold more than one license or own
shares in, or have any other direct financial interest in any other licensee. No person other
than the Royal Government and wholly state owned companies, that directly or indirectly
owns or controls a Licensee may own any shares in or have a direct financial i nterest in
any other licensee.
The licensee shall not rent, sell or deposit as lien its license to any other person. The
licensee can assign or transfer its license to any other person only with the special approval
of Authority. Only the Royal Government may transfer the licenses held by the state or by
the state owned companies to another person as part of the power sector reform.
For the purpose of this law and in the public interest, the Authority may approve,
disapprove, or restrict the following acti vities of licensees:
–   Conducting a business merger or reorganization, or a major acquisition or sale of
assets or securities; or
–  Expanding the licensee’s business activities.

CHAPTER VII:
TARIFFS

ARTICLE 46:
The Authority shall determine and review the tariff rates, charges, and service terms and
conditions of the licensee. Within ninety (90) days from the receiving date of any
application by licensees requesting the Authority to determine or revise their tariff, the
Authority shall approve, revise, o r disapprove this request.
The Authority shall determine the effective date for new tariff or the revised tariff not
later than ninety (90) days as stipulated above.
ARTICLE 47:
The Authority shall establish procedures and models for submitting the tariff applications
for approval in accordance with the provisions of this Law.
The Authority shall establish the rules for licensees regarding:
–  Evidentiary requirements for tariff applications, including audited financial
information;
–  Time frames for tari ff applications and decisions;
–  Procedures for consumers and other interested parties to comment on tariff
applications; and
–  Procedures for the Authority to obtain additional information from the applicant as
necessary to evaluate tariff applications.
ARTICLE 48:
The electricity tariffs approved by the Authority shall:
(i)    Protect consumers against monopolistic prices;
(ii)    Provide licensees with an opportunity to recover their costs but this cost recover
shall be the proper expenditure according to t he business standard which is
determined by Sub-Decree.
(iii) Encourage the efficiency of operations and internal management of licensees by
allowing to increase their financial returns according to the result of the minimizing
its service costs; provided  that the licensee meets all requirements of its license
concerning the supply and quality of service;
(iv) Encourage the economic efficiency of power sector by reflecting short run and long
run marginal costs and by sending accurate price signals regarding the abundance
or shortage of the supply of electric power services; (v)  Take into account the cost and other appropriate differences between categories of
customers and types of service, any subsidies provided by the Government to
subsidize any customer or category of customers; provided that
no Government policy shall prevent a licensee from exercising any rights granted
in its license to disconnect any public or private consumer for failure to meet its
payment obligations under any contract or approved terms and conditions of
service.
Allocations of the revenue required to cover the cost of licenses fees shall be assigned so
that costs are recovered from each customer category in proportion to the costs of serving
that category.
Different tariffs may be estab lished for each customer category to reflect the quantity of
peak, average, or overall usage of electricity at different times, seasons, the time of day or
year, the types of services purchased, or other similar factors. Lower rates for low usage or
poor r esidential and rural customers may be established to ensure the availability of
electricity supply to these customers. Performance-based tariffs may, including revenue
indexing, price indexing, and other innovative tariff methodologies may also be used if the
Authority found that the use of such methodologies is in the interest of licensees and
consumers.

CHAPTER VIII
OTHER REGULATIONS ON THE ELECTRIC POWER SERVICES

ARTICLE 49:
The Authority shall establish procedures and standards to obtain information  from
licensees regarding the investment and power acquisition programs.
ARTICLE 50:
The Authority shall require each licensee to ensure and certify that metering equipment
and meter testing facilities comply with all applicable standards. Licensees shall measure
the quantity of power supply only by the metering equipment, which has been tested by
meter test facilities certified by the Authority.
Any metering equipment and meter testing facilities may be inspected by the Authority
from time to time to ensu re continuing compliance with applicable standards and
requirements as approved by the Authority.
Licensees and consumers of electricity shall give access to the Authority and its employees
to inspect and test meters and meter test equipment to verify the accuracy of measurement
of supplies without prior notice.
ARTICLE 51:
Licensees shall:
(i)    Install the metering equipment in the most practical location where the licensee
can easily to read the meter and the consumer can preserve the equipment;
(ii)  Have the right to test, replace and modernize metering equipment, the cost of
which shall be borne by the licensee;
(iii)  At the request of a consumer, inspect and recalibrate the metering equipment
and, if necessary, install a temporary meter if the installed equipment needs to
be removed and repaired.
All charges for this testing, calibrating, inspection and replacement shall be approved by
the Authority.
ARTICLE 52:
Consumers:  (i)    Shall report to licensee any observed malfunctions and facilitate the inspection,
repair or replacement of that equipment by licensees upon giving reasonable
notice; and
(ii)   May have their own metering equipment, provided that it satisfies all the
prescribed standards and requirements.
ARTICLE 53:
All licensees shall use a uniform  system of account established by the Authority for
financial and economic reporting to the Authority.
The Authority shall use the financial and economic reports provided by licensees and its
own analysis as the basis for calculating tariffs.
ARTICLE 54:
After receiving not less than twenty -four (24) hours notice before operation, consumers
must allow the authorized representative of a licensee to enter into their premises or
property for the purpose of inspection, repair and maintenance of meters and elec trical
facilities, legal disconnection of service or installation of electrical facilities and
equipment. In the event of emergency situations, licensee or its authorized representatives
have the right to enter any premises or property without prior notice.
ARTICLE 55:
A licensee may arrange, construct, or install, such electrical facilities and equipment as are
necessary for the licensee to satisfy its electric power supply services responsibilities under
this Law.
The licensee shall take reasonable effo rts through negotiations and conciliation with the
owners of the lands and by paying appropriate compensation to acquire necessary rights of
entry, rights of way, and/or easements.
In the event that licensee is unable to obtain such rights through reasona ble efforts as stated
above, the Authority, upon request by the licensee, shall intervene to the relevant authority
to settle these issues in the public interest.
ARTICLE 56:
Licensee shall responsible for all actions performed by their employees on the operation of
its electric power supply services.

CHAPTER IX
ENFORCEMENT OF THE AUTHORITY

ARTICLE 57:
The Authority shall be competent to file the complaint in the courts of the Kingdom of
Cambodia for any violation of this Law, and violations of the regula tions, orders,
judgments and licenses issued by the  Authority.
ARTICLE 58:
The Authority shall issue the regulations and the procedures for imposing sanctions and the
amount and nature of penalties which it may impose for specified license violations, as
well as procedures governing the revocation of licenses and the conditions which shall
apply for the continued operation of the facilities covered by the licenses.
ARTICLE 59:
The Authority shall determine the procedure including the instruction and the receiving
procedure for governing the termination by licensee of electric power services for non –
payment. The procedure shall also determine the penalties through payments of interests,
charges for disconnection or reconnection and such other means as appropriate to ensure
that licensees can fully recover all costs associated with payment of arrears, and that the
arrangements are fair to consumers.
ARTICLE 60:
Any Licensee, or consumer that is party to a dispute regarding the supply of electric power
services, under an Authority approved tariff or under a contract, may refer the dispute to
the Authority for resolution; provided   that the related License requires such dispute to be
referred to the Authority.
Any interested person may file to the Authority a wri tten complaint against a licensee
alleging a violation of any provision of this Law. The Authority shall investigate this
complaint and determine whether there may have been a breach of this law. If the
Authority determines that there is a violation, then  the Authority shall provide the licensee
with written notice of this complaint and give an opportunity to the licensee to respond in
writing. In either case, the Authority shall advise the complainants within fifteen (15) days
after receipt of the complaint.

CHAPTER X:
ADMINISTRATION

ARTICLE 61:
Regulations issued by the Electricity Authority of Cambodia shall be published and
thereupon shall be effective. The Authority may amend its regulations from time to time as
the Authority may deem appropriate and  the amendments shall be effective upon
publication.
ARTICLE 62:
The Authority may investigate any facts, natures, actions or matters which it may find
necessary or proper to determine whether any person has violated or is about to violate any
provision of this law or any implementing Sub -Decree, regulation, order, or judgment of
the Authority.
ARTICLE 63:
All orders, regulations, judgments, and determinations of the Authority together with the
related written explanation, shall be submitted to the interested parties with a copy to be
sent to the Royal Government. In addition, all orders, regulations, judgments and
determinations shall be made available to the public, free of charge, at the offices of the
Authority. The Authority shall require the licensee t o make available for the public
inspection of all their licenses and approved tariffs, other charges, and terms and
conditions of their service at the principle offices of the licensee and at such other locations
as the Authority may require in accordance with the public interest.

CHAPTER XI:
PENALTIES, SANCTIONS AND FINES

ARTICLE 64:
Monetary penalties ranging from 400,000 Riels up to 4,000,000 Riels shall be imposed
on licensees and their employees per violation per day for each day that a violation of
the provisions occurs. In the case that the violation continues, the Authority may issue the
termination notice and take other legal measures;
ARTICLE 65:
In the case of the licensee’s material failure to comply with the conditions of its license, the
Authority has the power to suspend or revoke its license and submit the case to the court.  If the Authority found that it is in the public interest not to revoke the license, the
Authority may in lieu of revocation impose sanctions as stated under Article 64 above until
the availability of new licensee to replace the existing one.
ARTICLE 66:
In addition to the sanctions as determined under Article 64, a fine ranging from one time to
three times of the price of electricity stolen or cheated, without prejudice of the
compensation for other damages, shall be imposed on the licensee who has the intention to
steal the electricity from the consumers.
ARTICLE 67:
Monetary penalties ranging from 400,000 Riels to 4,000,000 Riels per day for every day
shall be imposed  on any person found to be providing electric power services without
having obtained the necessary license;
ARTICLE 68:
Monetary penalties ranging from one to three times of the price of electricity calculated
based on the average price of the electricity  used over the previous three months before
having committed the offense or calculated based on connected electrical equipment,
without prejudice of the compensation for other damages, shall be imposed to any person
who steals electricity by illegal connect ion, destroying or tampering the meter or by other
methods. The offender shall also pay for the electricity which has been stolen calculating
based on the average consumption above but not more than twelve (12) months.
ARTICLE 69:
Theft, tampering of, or c ausing willful damage to the power supply installation, facility or
equipment of the licensee is a criminal offense and shall be punished by fine from
4,000,000 Riels to 40,000,000 Riels or imprisonment from one (1) to three (3) years or
both punishments, without prejudice of the compensation of other damages.
ARTICLE 70:
All employees of the Authority, who violates this law will face administrative action
punishment, without prejudice of other criminal sentences.

CHAPTER XII:
TRANSITIONAL PROVISIONS

ARTICLE 71:
The Electricity Authority of Cambodia is established as of  the effective date of this Law.
ARTICLE 72:
By no later than three (3) months after the effective date of this Law the Prime Minister
shall appoint the Chairman of the Authority with a three (3) years term and (2) two other
members with two (2) years term for the first member and one (1) year term for the second
member.
ARTICLE 73:
The Royal Government shall provide the initial fund to the Authority for its operation upon
the appointment  of the Chairman. The Authority shall deposit this fund in a separate
account for its use.
ARTICLE 74:
The Ministry of Industry, Mines and Energy shall transfer the functions and duties defined
in this law in an orderly manner to the Authority as soon as th e Authority is fully
operational.
ARTICLE 75:
All existing suppliers of electric power services shall apply for a license with the Authority
within six (6) months after receiving the announcement of the Authority. ARTICLE 76:
The Authority shall not issue any order or regulation abridging or expanding, without the
mutual consent of the parties, the rights or obligations provided under a contract in
existence at the effective date of this law including the right to recover rates or charges
under such contract.
ARTICLE 77:
After the effective date of this Law, the Authority shall issue the regulation in relation to
the operation of own generation facilities that affect the environment.

CHAPTER XIII:
FINAL PROVISIONS

ARTICLE 78:
Any provisions that contradict this Law shall consider null and void.
ARTICLE 79:
This law shall be promulgated as urgent.

Phnom Penh, February 02, 2001
Signed by

NORODOM SIHANOUK

Reported and Requested for
the signature of His Majesty the  King of Cambodia
Prime Minister
Signed by
HUN   SEN

Reported to the Prime Minister
Minister of Industry, Mines and Energy
Signed by

SUY   SEM

English translation has been reviewed with
Ministry of Industry, Mines and Energy on
August 2001.

Unofficial translation.

Printed by Electricity Authority of Cambodia

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