NS/RKM/0201/03
We,
Preah Bat Norodom Sihanouk,
King of the Kingdom of Cambodia,
- Having seen the
Constitution of the Kingdom of Cambodia;
- Having seen the Reach Kram
NS/RKM/0399/01, dated March 8, 1999 promulgated the Constitutional Law on the
amendments of Articles 11, 12, 13, 18, 22, 24, 26, 28 30, 30, 34, 51, 90, 91,
93 and other Articles of Chapter 8 through Chapter 14 of the Constitution of
the Kingdom of Cambodia;
- Having seen the Reach
Kret NS/RKT/1198/72 dated November 30, 1998 regarding the appointment of the
Royal Government of Cambodia;
- Having seen the Reach
Kram 02/NS/94, dated July 20, 1994, promulgating the Law on the Organization
and Functioning of the Council of Ministers;
- Having seen the Reach
Kram 01/NS/93, dated December 28, 1993, promulgating the Law on Financial
System
- Having seen the Reach
Kram NS/RKM/0196/18 dated January 24, 1996, regarding the Law on the
Establishment of Ministry of Industry, Mines and Energy;
- Pursuant to the proposal
of Samdech Prime Minister and the Minister of Industry, Mines and Energy.
The
Law on Electricity of the Kingdom of Cambodia which is adopted by the National
Assembly on November 6, 2000 at its fifth plenary session of the second
legislature and approved by the Senate on the form and legal principles on the
December 31, 2000 at its fourth plenary session of the first legislature and
declared as constitutional by the Constitutional Council on the 15th
of January 2001 with the following contents:
THE ELECTRICITY LAW
OF THE KINGDOM OF CAMBODIA
CHAPTER I: GENERAL PROVISIONS
Article 1:
The scope of this law shall manage and regulate
the activities in relation to supplier and consumption of electricity within
the Kingdom of Cambodia.
This law is covered the whole territory of the
Kingdom of Cambodia for all activities that related to the supplier, services,
usage's and other activities of electricity.
The electricity of this law is means the
electricity energy or the ability to produce the electricity energy.
The service of this law shall mean the
production, transmission and distribution of electricity and other services
that related to the services above.
Article 2:
The purpose of this Law is 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)
Favorable conditions for capital
investments in, and the commercial operation of, the electric power industry;
(c)
The basis for the regulation of the
supply of electric power services to the extent such services are monopolistic;
(d)
The basis for (i) the protection of
the rights of consumers to the reliable and adequate supply of electric power
services at reasonable cost, (ii) the promotion of private ownership of the
means of providing electric power services, and (iii) the establishment of
competition wherever feasible within the electric power sector;
(e)
The basis for establishing the rights,
obligations and penalties which shall apply to suppliers and consumers of
electricity and also the public and land owners in relation to electricity
facilities and supply; and
(f)
The Electricity Authority of
Cambodia for regulating the provision of electric power services.
The customer in this
law shall mean a person or his successor in interest that purchases or receives
electricity power for consumption and not for delivery or resale to others.
CHAPTER II
THE FUNCTION AND SERVICES OF THE
ELECTRICITY AUTHORITY OF CAMBODIA
Article 3:
The Ministry of Industry, Mines and
Energy shall responsible for the organizing and policy management, strategies
and planning of the Royal Government on the electricity power.
The Authority shall ensure that the
provision of electric power services shall be governed by principles of efficiency,
quality, continuity, adaptability and transparency.
Article 4:
The Ministry of Industry, Mines and Energy in
its capacity as having overall responsibility for coordinating energy policy
and planning including that of the electricity sector shall ensure that there
is liaison on a regular basis with the Authority and that it is informed of
electricity sector planning and decision including those on:
(i)
Investments in the rehabilitation and
development of the sector in the short, medium and long term;
(ii)
Restructuring, private sector
participation and privatization of State owned enterprises;
(iii) Promotion of the
use of indigenous energy resources in the generation of electricity;
(iv) Planning and agreements on the export and
importation of electricity;
(v)
Subsidies to specific classes of
customers and priorities regarding consumers of electricity;
(vi)
Promotion of efficiency in the
production, transmission and distribution of electricity and its use by
consumers and action taken to create a Comprehensive Electricity Conservation
Program for Cambodia; and
(vii)
Electricity sector emergency and energy security strategies.
Article 5:
Each supplier of electric power
services in the Kingdom of Cambodia is required to be licensed, and shall be
subject to the provisions of their license, the rules and procedures of the
Authority, and the requirements of the laws of the Kingdom of Cambodia.
In order to safeguard the public
interest when making the decision on granting of licenses, and the decisions
that stipulated in Article 4 of the said law the Authority shall taking into
account the Government policy, strategies on electrical sector planning which
aim to reduce the long and short run marginal cost of providing electricity
throughout the Kingdom of Cambodia.
The Authority shall therefore
guarantee to the licensees to use the standard that related to technical,
safety and environment that issued by the Ministry of industry, Mines and
Energy.
License in this law shall mean a
license for the provision of an electric power services.
The Licensee shall mean a person to
whom the Authority has granted a valid license under this law.
The Authority shall establish
procedures and standards to obtain information from licensees regarding the
investment and power acquisition programs of licensees.
CHAPTER III: ESTABLISHMENT AND
FUNCTIONS OF THE ELECTRICITY AUTHORITY
Article 6:
The Electricity Authority of Cambodia is a legal
public entity that receives the right from the Royal Government of Cambodia as
an autonomous agency to control the service of electricity and to manage the
supply and usage of electricity.
Article 7:
The Authority is empowered, amongst other
functions provided for in this Law:
(a)
To issue, revise, suspend, revoke or
deny the licenses provided for in article 29 of this Law;
(b)
To approve the 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 implement procedures and standards
for investment programs by licensees;
(d)
To review the financial activities and
corporate structure of licensees to the extent they directly affect the operation
of the electric power industry and the efficient supply of electric power;
(e) To approve and enforce performance standards
for licensees;
(f)
To evaluate and resolve consumer
complaints against and contractual disputes involving licensees, to the extent
the complaints and disputes relate to the violation of the Conditions of
License;
(g) To
approve and enforce a uniform system of accounts for all licensees consistent
with generally accepted accounting practices;
(h) To prepare and publish industry reports and
relevant information receives from licensees for the benefit of the Government
and the general public;
(i)
To prescribe fees applicable to licensees;
(j)
To determine procedures for informing
the public about issues within its jurisdiction, in order to ensure that the
Authority complies with the principle of transparency set forth in Article 3;
(k) To promulgate rules and regulations and to make appropriate orders,
and to issue temporary and permanent injunction;
(l)
To impose monetary fines or penalty, to suspend
or revoke the license of any licensee for violations of this Law and
regulations that imposed by the Authority;
(m)
To
impose on the licensees and customers to obey the regulations that related to
the national security, energy, economic, environmental, and other policies of
the Government in all proceedings before it;
(n) To perform any other function incidental or
consequential to any of the foregoing as describes above;
(o)
To establish the terms and conditions of
employment of the officers and employees of the Authority, including
consultants and advisors.
Article 8:
The Electricity Authority of Cambodia shall
consist of Secretariat and Departments.
The Secretariat shall divide to various
technical departments and shall be managed by one Executive Director for
technical and administration tasks.
The Organization and Functioning of the
Secretariat shall be determined in the internal regulation of Electricity
Authority of Cambodia.
The Authority shall consist of three members,
including the Chairperson. The members shall be designated and proposed by the
Prime Minister and shall be appointed by Royal Decree. The terms of members
except for the initial members shall be three years and shall be staggered
except the first term, which is stipulated in Article 72 of the said law.
No member shall be
appointed to serve on the Authority for more than two (2) terms.
For two (2) years after the conclusion of their
term of office, neither the Chairman nor any Member shall enter into the
employment with or have any advisory or consulting relationship with any
licensee.
Article 10:
An individual shall be eligible to serve as a
Chairman or members of the Authority who is (i) a Cambodian citizen and a
qualified voter in the Kingdom of Cambodia, (ii) who has never been convicted
of a crime punishable by a prison sentence, (iii) who has university degree in
electrical engineering, law, economics, accountant, finances or engineering
that related to the electricity and have relevant training and has recognized
by the government institution, (iv) has an experience of at least ten (10)
years; and (v) he/she shall be of known integrity and competence. This
appointment is not based on political tendency.
Article 11:
The members 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:
No member or employee of the Authority shall
directly own any securities of, or have any economic interest in, or hold any
position with any licensee or applicant for a license but shall not prevent any
member or employee of the Authority from being a customer of any Licensee.
No Licensee shall offer, or any person acting on
behalf of any licensee shall offer any gift or gratuity that against the public
interest to any member or employee of the Authority. Nor shall any member or
employee of the Authority accept, any gift or gratuity from any licensee or any
person acting on behalf of any licensee, that generally applicable to the
public.
During the Chairman’s or Member’s term, neither
the Chairman nor any Member, nor his 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 electric
power services in Cambodia or to any related undertaking.
Article 13:
The Chairman and the Members of the Authority shall not be a
public servant, a person serving as adviser of any Government Institution, a
member of any political party, a member of the Royal Government, or a member of
the Senate, or member of the Constitutional Council, or a member of the
National Assembly during their term of office. The Chairman and the Members of
the Authority shall resign from the above positions or memberships when they
are appointed.
Article 14:
Vacancies shall occur whenever a member of the
Authority shall (i) die, (ii) resign,
(iii) retire (iv) is convicted of a crime punishable by prison sentence, (v) lose citizenship or the right to vote,
(vi) is found to be mental or physical incapacity, (vii) is found to have
committed a serious that is stipulated in Article 11, 12 and 13, (viii) gross
negligence in the performance of duties; or (ix) is found to have committed and
grave misbehavior in relation to the members’ responsibilities under the Law;
(x) for dereliction of duties;
The removal process of a member for the case of,
(v), (vi), (vii), (viii), (ix), or (x), the Prime Minister shall decide to
suspend the said member from duties and shall send the case to the tribunal.
Prime Minister shall appoint other member during the suspension period.
Article 15:
Whenever a vacancy in the Authority occurs prior
to the expiration of a term, the
Prime Ministers shall designate a replacement member to fulfill the former
member's term.
Royal Decree shall appoint the new member. The
new member's completion of the former member's term shall not reduce the number
of full terms as stipulated in Article 9 of this Law.
Article 16:
The Chairman and Members are
to be paid such salary and allowances and benefits as are determined by the
Government and be at least equivalent to the rank of a Secretary of State in
the case of the Chairman and Under Secretary of State in case of the Members.
The Chairman and other
Members shall retire from office when they attain the age of sixty (60)
years. In case of retirement before the
term expired, the Prime Minister may be permitted member to continue his/her
duties.
The Chairman or other Members may at any time resign
from their office by giving written notice of one (1) month to the Prime
Minister.
Article 17:
The Chairman may not be moved from the position
of Chairman of the Authority during a term of office except for the reasons
given in Article 14 of this Law.
Article 18:
The
Chairperson shall be responsible for:
- Managing the Electricity Authority of
Cambodia
- Presiding over the meetings of the
Authority and
- Publishing and carrying out the
Authority's decisions.
In addition, the Authority may delegate to the
Chairperson any of its powers, duties, or functions, except:
- The powers to issue, reject, amend,
or revoke licenses
- The power to reject applications for
a license or modification of a license;
- The powers to determine, approve,
disapprove, or modify tariffs or an investment and power acquisition program;
- The power to issue, revise, or repeal
regulations; or
- The power to decide on an appeal of
any party or person.
Any aggrieved party or person may make appeals
to the Authority in such cases within thirty (30) days of promulgation of the
ruling.
The
Chairperson may designate in writing to one of the other members to fulfill the
duties of the Chairperson in his/her absence.
Article 19:
The Chairperson of the Authority, in
consultation with the other Members, shall appoint all employees and hire such
other expert staff from time to time as may be necessary for the proper
discharge of the Authority's duties. Employees and expert staff of the
Authority shall comply with the Labor Law.
CHAPTER IV: TYPE OF LICENSES
Functioning of Electricity Authority of
Cambodia
Article
20:
The Authority shall promulgate and adopt rules
controlling meetings between members or employees of the Authority and any
party to any proceeding to establish a tariff or to grant a license. The rules
shall provide that for any proceeding or meeting of the Authority that is to
consider the establishment of a tariff or the granting of a license, all
interested parties will be given notice of the time, and date of the proceeding
or meeting and be given an opportunity to participate.
Article
21:
Each member shall have one vote on all matters
requiring a decision of the Authority, and all decisions of the Authority will
be by majority vote. Two members shall constitute a quorum of the Authority.
All members shall be given notice of the time and place where the decision will
be voted on.
Article
22:
The sessions of the Authority for the hearing of
any proceeding shall be public, and the Authority's decisions, with its
reasons, shall be made public at the time decisions are made unless the
Authority has the reasonable causes and decides to delay the decision.
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,
documents, and files 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 it remains confidential, whenever
it determines confidentiality is necessary.
Except as otherwise expressly provided in this
Law, no outside authority or agency of the Government shall interfere in
decisions of the Authority.
Article 23:
Before
promulgating any general order, or any rule or regulation, the Authority shall
give reasonable notice of its contents and shall give interested legal persons
and members of public an opportunity to present evidence and be heard. Every
such order, rule, and regulation shall be available to the public.
Before the
Authority enters any finding, order, or judgment against any legal person or
individual, it shall give such legal persons or individual reasonable notice of
the time and place at which the legal person or individual shall be given an
opportunity to give evidence and be heard.
Article
24:
Following
a final decision or the promulgation of final ruling in each Authority
proceeding, the Ministry of Industry, Mines and Energy and each affected party
shall have a right of appeal to the Courts of the Kingdom of Cambodia; provided
that the appeal is filed within three (3) months of the final decision or the
promulgation of final ruling.
Article
25:
The members and employees of the Authority shall
be jointly liable for the consequences of actions taken or be sued for any
actions taken pursuant to the provisions of this Law and any implementing
Sub-Decrees and regulations.
Article
26:
The Authority shall determine the salary, and
other remuneration of 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 costs. 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 remuneration 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 approval.
Article
27:
The Authority shall have an autonomous budget
for their operation. This budget shall obtain through fees paid to the
Authority by applicants and licensees that determine by the Authority. This fee
is called the license fee.
The budget shall be deposited in a commercial
bank in the kingdom of Cambodia for the use of the Authority, which shall have
sole access to the funds.
The license fee shall determine by Sub-Decree.
Any funds in the Authority account not used in one year shall be carried
forward to the next year and the future Authority's budget lost or gain shall
be adjusted and periodically the Authority shall review the license fees.
The Authority shall request to the Government
for reviewing the new tariff when the Authority is unable to pay the loan with
interest after readjust the maximum tariff. The Authority shall use their
financial operation in accordance with generally accepted accounting standards.
Article
28:
One month
after the financial year the Authority shall prepare a financial report in
accordance with generally accepted accounting standards.
Each
financial report, together with the Authority’s books of account and related
records, shall be subject to review by the National Audit Authority who shall
give its conclusions regarding the Authority’s financial report.
One month after the end of each financial year
the Authority shall submit an audited report of its financial accounts to the
Prime Ministers, and shall publish publicly.
CHAPTER V: TYPE OF LICENSES
Article 29:
The Authority shall have an authority to issue
licenses as determined in Article 7(a). The license is as following:
- Generation Licenses
- Transmission Licenses
- Dispatch Licenses
- Distribution Licenses
- Bulk Sale Licenses
- Retailer Licenses
- Subcontractor Licenses
- Consolidate Licenses
Article
30:
The Generation Licensee shall have the right to
generate the electricity power according to generation principle. The Licensee
has the right to manage, operate or operate specifically identified generation
facilities to sale not for own uses.
The License issues under this section for the
primary purpose of promoting the safe, reliable, and economic operation of the
national transmission grid and connected facilities.
The duration of the license shall generally be
the expected useful life of the generation facility unless in the case of a
Power Purchaser Agreement a shorter term is specified. This license may be revoked
under this Law.
Article
31:
The Transmission Licensee shall have the right
to transmit the electricity power. The right in this license is authorizing the
licensee to operate, manage the specified transmission facilities for transfer
and deliver or sell the electricity in bulk. There are two types of this
transmission license, National Transmission License and Special Purpose
Transmission License.
Article
32:
The National Transmission Licensee shall issue to the State power company
that has the exclusive right to provide transmission service within the whole
of Cambodia (except in the territory served by Isolated Systems as provided in
Article 35 paragraph (1)) and subject to the rights of special purpose
licensees under Article 33 of this Law, for the delivery of electric power to
distribution companies and bulk power consumers, provided that only one such
license may be in effect at any time.
The license issued under this Article may be of
an indefinite term and subject to revocation under this Law.
Article 33:
The Special Purpose Transmission Licensee shall have the right to construction, ownership and/or
operation of specified transmission facilities in Cambodia that warranted the
public interest. The Government shall determine the principle and condition for
issuing the Special Purpose Transmission Licenses.
Licenses issued under this section may be of
indefinite term or limited to the useful life of 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 engage in the distribution of electric power in Cambodia provided that each
license shall apply to a contiguous service territory. The right in this
license is authorizing the licensee to operate, manage the specified
transmission facilities for transfer and deliver or sell the electricity to the
customers. The private ownership right to distribute and operate and manage the
electricity for private use at its own private location is not consider as the
distribution of electricity.
All licenses issued under this section may be of
an indefinite term, subject to revocation under this Law.
Article 35:
The Consolidate Licenses is one or all licenses that
determined in paragraph 1 to 7 of
Article 29 of this Law. The
consolidated licenses that issued to EDC and Isolated Systems to engage in the
generation, transmission and distribution of electric power and to make sales
of electric power to consumers. In addition the licensees under this section
must obtain a generation license for each new generation facility.
For purposes of encouraging efficiency and
competition where this will contribute the least long run marginal cost of
electricity, the Authority shall include provision in license which provided
for disaggregate generation, transmission and distribution services in the
licensees' service territory.
Article 36:
The dispatch Licensee shall the right to
control, manage and cooperation to dispatch the electricity for facilitating
the delivery and receiving the electricity of the generation, transmission and
distribution system.
All licenses issued under this section may be of
an indefinite term, subject to revocation under this Law.
Article 37:
The Bulk Sale Licensee shall have the right to
buy the electricity from the Generation Licensee or the electricity form
neighboring country for sale to the Distribution Licensee and the customer that
buy the electricity in bulk.
The Authority may issue licenses authorizing the
licensee to sell in bulk when the Government has been issued the regulation
that permit the bulk sale.
All licenses issued under this section may be of
a definite term and subject to revocation under this Law.
Article 38:
In issuing consolidate licenses, the Authority
must consider long run planning and the Government policy goal is to reduce
long run marginal cost of provision of electricity to consumer. In this content
the Authority should take into account the Government goal to establish a
national electricity grid and progressively expand the grid throughout
Cambodia.
Article 39:
The Retailer Licensee shall have the right to
engage in the sale of electric power to consumers, provided that each license
shall apply to a contiguous service territory.
To obtain a license under this section, the
applicant must have a subcontract from the electric utility licensed to engage
in the sale of electric power to consumers; provided all such contracts shall
be submitted to the Authority for review and approval.
The electric power that the retail licensee may
sell to consumers must be purchased from an electric utility licensed to serve
the applicable geographic territory, until such time as the Authority permits
purchases from other suppliers of electric power consistent with national
energy policy.
All licenses issued under this section shall
have a maximum five (5) year and renewable, subject to revocation under this
Law.
Article 40:
The Subcontract Licensee shall have the right to
supply of electric power services under subcontracts with licensees. Licenses
under this section shall include all applicable conditions, and such additional
license conditions as the Authority may conclude are in the public interest.
The Authority may issue regulations regarding the
activities and operation of subcontracts as it may conclude 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 under and in accordance with
the terms of a valid license issued by the Authority.
Licenses shall be issued only to persons who
establish to the satisfaction of the Authority their competence to operate as
an electric power utility and to satisfy the service obligations and conditions
to be included in the license. Licensees shall not be required to provide
electric power services, 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, labor,
health, taxes, and electric system performance, protection and standards.
Licensees
shall use 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 of Licensee’s activities
for the past year;
(ii) An annual work plan describing the
Licensee’s anticipated activities for the following year; and
(iii) Such other reports, statements, and
information as the Authority by regulation, determines to be necessary or
appropriate.
Each
Licensee who holds a Generation License shall submit to the Authority any
reports, statements, and information that the Authority, by regulation, deems
necessary for the safe and reliable operation of the Transmission Grid and
connected facilities.
Article
43:
Before issuance of any License, or the
reinstatement of a suspended License, the Authority may require a bond or other
form of financial security necessary to ensure satisfaction of service
obligations and adherence to this Law and the conditions of the License,
including the payment of License Fees.
Article
44:
The Authority in accordance with this Law shall
establish the conditions that shall apply to the grant, rejection, amendment or
revocation of licenses and the manner in which they may be applied for.
Article
45:
No licensee, other than a licensee that is
wholly state owned, may hold more than one license or own shares in, or have
any other direct financial interest in any other licensee without the approval
of the Authority. No person other than the Government and wholly state owned
companies, that directly or indirectly owns or controls a Licensee may, without
Authority approval, own any shares in or have a direct financial interest in
any other licensee.
A licensee may not, without the Authority's
prior approval, surrender, assign, or otherwise transfer its license to any
other person, except that the Government may transfer licenses held by the
state or wholly state owned companies as part of any restructuring effort or privatization
transaction. The Authority may approve, disapprove, or restrict, consistent
with the purposes of this Law, any implementing Sub-Decrees, and the public
interest, the following activities by 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
licensees tariff rates, charges, and terms and conditions of service, and shall
within ninety (90) days of any application by licensees for changes, approve,
modify, or disapprove the changes requested, except as otherwise stated in this
Law.
The Authority shall determine the effective date
for new tariff or the modify tariff not later than ninety (90) days as
stipulated above.
Article 47:
The Authority shall establish the procedures and
standards pursuant to which applications under this Article may be submitted,
in accordance with the provisions of this Law.
The Authority shall establish rules for
licensees regarding:
- Evidentiary requirements for tariff
applications, including audited financial information;
- Time frames for tariff applications and
decisions;
- Procedures for customers 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:
Tariffs
for electric power services established 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 spending in doing
business and this spending shall determine by Sub-Decree.
(iii)
Encourage efficiency in internal operations and management practices of
licensees by allowing their financial returns to increase as a result of the
licensee having minimized its costs of providing service; provided that the
licensee meets all requirements of its license concerning the provision and
quality of service;
(iv)
Encourage economic efficiency within the electric sector by reflecting short
run and long run marginal costs and by sending accurate price signals regarding
the relative abundance or scarcity of the supply of electric power services;
(v)
Take into account cost and other
appropriate differences between classes of customers and types of service, any
subsidies provided by the Government to subsidize any customer or class 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 requirement to cover
the cost of licenses fees shall be assigned so that costs are recovered from
each customer class in proportion to the costs of serving that class.
Different tariffs may be established for each
customer class to reflect the quantity of peak, average, or overall usage of
electricity at different times, the season, the time of day or year, the types
of services purchased, or similar parameters. Lower rates for low usage or poor
residential 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 finds the use of such
methodologies to be in the interest of licensees and consumers and fair to
licensees.
CHAPTER VIII: OTHER REGULATION
OF ELECTRIC POWER SERVICES
Article 49:
The Authority shall establish procedures and
standards to obtain information from licensees regarding the investment and
power acquisition programs of licensees.
Article 50:
The Ministry of Industry Mines and Energy shall
develop and notify performance, technical, safety and environment related
standards for electric power. The Authority shall ensure that licensees abide
by the standards.
The Authority shall require each licensee to
certify that metering equipment and meter testing facilities comply with all
applicable standards. Licensees must measure the supply of electric power by
use only of metering equipment, which has been tested by meter test facilities,
which have been certified by the Authority. Any metering equipment and meter
testing facilities may be inspected by the Authority from time to time to
ensure continuing compliance with applicable standards and requirements as
approved by the Authority.
Licensees and consumers of electricity shall
without notice 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.
Article 51:
Licensees shall:
(i)
Place metering equipment in the most practical
location that enables the licensee to gain access to the meter and the consumer
to ensure the safekeeping of the equipment;
(ii) Have
the right to test, replace and modernize metering equipment, the cost of which
shall be borne by the licensee;
(ii) 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. The Authority shall determine any charges for this
testing, calibrating, inspection and replacement.
Article 52:
Consumers:
(i)
Shall preserve the metering equipment
with due care, report any observed malfunctions and make the equipment
available for inspection, repair or replacement by licensees upon giving
reasonable notice; and
(ii)
May own the metering equipment provided
that it satisfies all the prescribed standards and requirements.
Article 53:
The Authority shall establish a uniform and
standardized system of accounts to be based on generally accepted accounting
standards. All licensees for financial and economic reporting to the Authority
shall use this system of accounts. The Authority shall use the financial and
economic reporting by licensees, and its own analysis, as the basis for
calculating tariffs.
Article 54:
After receiving not less than twenty-four (24)
hours notice and at any reasonable time, consumers must allow the authorized
representative of a licensee to enter premises or property. Such entry shall be
for the purpose of inspection, repair and maintenance of meters and electrical
facilities, lawful disconnection of service and the examination of the
suitability of the property for construction or installation of electrical
facilities and equipment. In the event of emergency situations, licensees may
enter any premises or property without prior notice.
Article 55:
A licensee may lay, put in position, construct,
or install, under or over any land, 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 commercial
efforts to acquire necessary rights of entry, rights of way, and/or easements
through negotiations with the owners of the lands and by paying appropriate
compensation.
In the event a licensee is unable to obtain such
rights through reasonable commercial efforts, and the need arises to acquire
easement or lands compulsorily, the Authority, upon request by the licensee,
may certify the acquisition to be in the public interest, to enable the
relevant authority of the Government to proceed with the compulsory acquisition
of the easement or land for the Licensee.
Article 56:
A licensee shall responsible for all actions
performed by their employee on its electric power supply services under this
Law.
CHAPTER IX: ENFORCEMENT AUTHORITY
Article 57:
The Authority shall be competent to file the
complaint in the courts of Cambodia for any violation of this Law, and
violations of the regulations, orders and judgments, and regulations of the
Authority and licenses issued by the Authority.
Article 58:
The Authority shall have the power to impose
penalties and sanctions on licensee and shall issue regulations governing its
exercise of powers under this Article, including 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 will apply for the continued operation of the
facilities covered by the licenses.
Article 59:
The Authority shall determine procedure
including instruction and receiving procedure governing termination by licensee
of electric power services for non-payment. The imposition of penalties through
payments of interests, charges for disconnection or reconnection and such other
means as appropriate to ensure licensees can fully recover all costs associated
with payment of arrears, and that the arrangements are fair to consumers.
Article 60:
Any Licensee, or customer 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 License
of the Licensees involved requires such dispute to be referred to the
Authority.
Any interested person may file a written
complaint with the Authority against a licensee alleging a violation of any
provision of the Law. The Authority shall investigate the complaint and
determine whether there may have been a breach of the license; if the Authority
determine this could be the case, then its will provide the licensee with
written notice of the complaint and an opportunity to the licensee to respond
in writing. In either case, the Authority shall advise the complainants within
fifteen (15) days).
CHAPTER
X: ADMINISTRATION
Article 61:
Regulations issued by the Authority 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,
conditions, practices 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, 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 Government. In addition,
all orders, judgments, determinations, and regulations shall be made available
to the public, free of charge, at the offices of the Authority. The Authority
shall require that the licenses and approved tariffs, charges, and terms and
conditions of service of each licensee shall be made available for public
inspection at the principle offices of the licensee and at such other locations
as the Authority may from time to time require in accordance with the public
interest.
CHAPTER X: PENALTIES, SANCTIONS AND FINES
Article 64:
The Authority shall impose monetary penalties on
licensees and their employees from 400,000 Riels up to 4,000,000 Riels per
violation per day for each day that a violation of a license provision occurs
or continues, issue injunctions, take other reasonable actions, and impose
other reasonable sanctions in order to enforce the requirements of this Law;
Article 65:
The Authority have the power to suspend or
revoke any license issued under this Law for material failure of the licensee
to comply with the conditions of its license, provided that if the Authority
decides that it is in the public interest not to revoke the license, it may in
lieu of revocation impose fines or other sanctions as it may deem appropriate
under Article 64.
Article 66:
In addition to the sanctions as it may determine
under Article 61 above; the Authority shall fine from one (1) time to three (3)
times of the price of electricity any person that has stolen electricity this
does not precluding other restitution which may be imposed by the Authority on
the licensee that has the intent to steal the electricity and record the wrong
meter from that actually used by the consumers.
Article 67:
Impose Monetary penalties 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 one (1) to three (3) times of
the charge for electricity calculated based on the average charge for the
electricity used over the previous three (3) months before having committed the
offense or calculated based on the electrical equipment used shall be imposed
on any person who steals electricity by destroying or tampering with a meter or
otherwise stealing electricity without prejudice to the licensee or other
affected parties to seek payment for any damage.
The offender shall also pay for the electricity
which has been stolen with this calculated based on the average charge above
but not more than average of the charge for twelve (12) months.
Article 69:
Theft, tampering of, or causing willful damage
to the power supply installation, facility or equipment of the licensees is a
criminal offense punishable, without prejudice to the licensee to seek
restitution, by fine from 4,000,000 Riels to 40,000,000 Riels or imprisonment
from one (1) to three (3) years or both without prejudice to the licensee or
other affected parties to seek payment for any damage.
Article
70:
All employees of the Authority that violated
this law will face administrative penalty, which is not including other
criminal offenses.
CHAPTER XII: TRANSITIONAL PROVISIONS
Article 71:
The Electricity
Authority of Cambodia shall be established after 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 and shall have three (3) years and two members. The
first member shall have a two (2) years term and the second member beginning
upon the appointment by the King. The person proposed second by the Prime
Minister shall have a one (1) year term.
Article 73:
The Royal Government shall provide
the initial fund to the Authority for its operation when the Chairman is
appointed. The Authority shall deposit this fund in a separate account for
their use.
Article 74:
The Ministry of Industry, Mines and
Energy shall to perform the regulatory function given to the Authority by this
Law and shall transfer these functions in an orderly manner to the Authority as
soon as the 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 the Authority is full operational.
Article 76:
At the effective date of this Law,
the Authority shall not issue any order or regulation utilizing the means of
abridging or expanding the rights and obligations of the licensees that deviate
from the existing agreement which included the right to recover rates or
charges of electricity.
Article 77:
After the effective date of this
Law, the Authority shall not issue any regulation utilizing the means of
generation of electricity that affect to 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 2, 2001
Norodom Sihanouk
Having submitted to King for
signature
Prime Minister: Hun Sen
Having submitted to Samdech Prime
Minister for signature
Minister of Industry, Mines and
Energy: Suy Sem