The Ministry of Mines and Energy has announced a reduction in electricity tariffs for the industrial and agricultural sectors, effective from October to December 2023. This move is aimed at increasing production, fostering job creation and supporting income growth for Cambodians.
This decision followed a call from Prime Minister Hun Manet on September 19, urging the ministry to cut power costs for the manufacturing sector. Manet’s recommendation was in response to the challenges posed by the current regional and global economic downturn.
The revised tariff scheme offers a “10 per cent discount on monthly average energy consumption from Monday to Saturday between 7am and 9pm” and a “20 per cent discount beyond the average monthly consumption from Monday to Saturday between 9pm and 7am, and 24 hours on Sundays and public holidays,” the ministry clarified in a press release.
Consumers wanting to take advantage of these discounted rates need to apply through their local power suppliers. State institutions, commercial entities and housing users are excluded, however, as they already receive subsidies from the Electricity of Cambodia (EDC) and the government alike.
During his September 19 meeting with garment factory workers in Takeo province, Manet highlighted the critical role the private sector plays in bolstering the national economy.
“Last evening, I spoke with energy minister Keo Ratanak about the potential benefits of this initiative. If prices decrease, industries and agricultural ventures that consume significant energy will likely expand their production, resulting in more exports and job opportunities,” he said.
Ratanak then informed the prime minister that an estimated 21,000 enterprises could benefit from these price reductions.