The concession contract for exclusive generation, import, export, transmission, distribution and sale of electricity in the Macau Special Administrative Region provides that the sale and supply of electricity must be governed by a standard contract between CEM and the Customer, providing the rights and obligations of each party.

The present document aims to provide a systematic overview of the standard terms and conditions for sale and supply of electricity at low and medium-voltage, as defined under Law-decree no.: 43/91/M of July 15th, with amendments introduced by Law-decree no.: 53/98/M of November 16th, and Decree no.: 429/99/M of November 15th.

In order to review the contents of the legislation hereinbefore referred to, annotations were compiled and are included at the end of this document. Such annotations are marked in brackets with sequential numbers next to each item in the document.

In order to improve the quality and effectiveness of the response to Customers' problems as well as their interaction with the Company, CEM has introduced the Customer Advocate.

Notwithstanding existing legitimate means to file complains with the Company, Customers may contact the Customer Advocate when they feel that response from CEM's services has not been satisfactory.

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1. CEM, the grantee of the public franchise for generation, import, export, transmission, distribution and sale of electricity to the Macau Special Administrative Region, hereinafter "the Company", and the Customer, duly identified in the supply contract referred to under item 2 hereof, hereby agree to supply and acquire, respectively, the electricity necessary for residential or non-residential (business and industry) needs of the Customer.
   
   
2. The Company undertakes to supply the Customer with the electricity needed at the location indicated in the supply contract under the terms provided in the next paragraph.
   
   
3. The grantors of the supply contract hereby accept the general and specific terms provided under the present standard contract and any amendments thereto that shall be generically introduced under approval from the Macau Special Administrative Region in the terms of the Concession Contract.
   
   
4. The Customer is hereby obliged:
   1. To use the electricity supplied at the address provided in the supply contract;
   2. Not to sell to third parties, for whatsoever reason, the whole or any part of the electricity supplied;
   3. Not to introduce alterations to the electric installation without prior consent from relevant authorities, nor modify any of the electric equipment installed "upstream" of its installation, namely meters, measuring transformers, circuit-breakers, fuses and conductors, without prior consent from the Company;
   4. Not to use the electricity supplied for any purpose other than the purpose established in the supply contract.
      
      
5. The Customer is obliged to inform the Company of any unauthorized electric lines that by any means may come to his knowledge, whether emanating from his/her installation, the pothead or the transformer substation that supplies the contracted electricity.

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1. In addition to the acceptance by both parties of conditions provided under the standard contract, the electricity supply contract shall include the following elements:
   1. Particulars of both parties and their capacity;
   2. Location of electricity supply;
   3. Purpose of installation;
   4. Supply voltage;
   5. Subscribed demand (kVA / kW);
   6. Contract type;
   7. Tariff group;
   8. Signing Date.
      
      

2. The supply contract may include other conditions provided that such shall not contravene existing legislation.

3. In the terms and to the effect of sub-paragraph 2.1 a) hereof, the Customer is obliged to submit evidence of the capacity invoked for the signing of the contract.

4. If irregularities are found with any of the documents submitted or if there is already a contract for the same location whose subscriber, of his/her own right, does not wish to terminate, the contract hereof shall be considered null and void.

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1. The supply contract shall only be signed between the Company and any person who is capable of showing, with probity, to hold due rights or possession, in its own name or other persons, over the property, or any fraction thereof, whereto electricity must be supplied.

2. Due rights or possession is deemed as ownership rights, tenancy rights, floor leasing and the gratuitous or onerous transfer of the property, to be supplied with electricity or any part thereof.

3. In the case of gratuitous transfer the holder of such right is obliged to show evidence of the legitimacy of such possession by means of a declaration signed by the grantor of the gratuitous transfer and duly certified in the terms of the Law.
   

4. The Customer shall only be able to sign a new supply contract after full settlement of any overdue debts with the Company.

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1. The Company reserves the right to demand from the Customer, simultaneous with the signing of the contract, as a precondition to start the supply of electricity, a guarantee, the amount and specific regulations of which shall be set by the Macau Special Administrative Region.

2. The guarantee hereinbefore mentioned is to be used as security for the payment of any debt of the Customer with the Company, but does not imply any limit to the liability of the former before the latter

3. A guarantee which has been deposited in cash shall be refunded in the term of the supply contract or any extensions thereto, after deduction of any debit due by the Customer to the Company, and shall revert in favor of the latter if not claimed within three years from the date of termination of the contract or the last extension thereof.

4. The Company holds the right to demand an update of the guarantee whenever there is an increase in subscribed demand or the reconstitution thereof when used, in whole or in part, to settle any debit payable by the Customer to the Company.

5. Failure to update the guarantee within a period of thirty days from the date of written communication served to the Customer to that effect is deemed sufficient reason for suspension of supply by the Company.

6. The amount and regulations of the guarantee, pursuant to paragraph 4.1 hereof, are established by the Macau Special Administrative Region under the terms provided in Schedule 1.

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1. The Company may sign with the Customer ordinary and extraordinary contracts, pursuant to the general provisions of the present document.

2. Special contracts signed with large customers and temporary electricity supply contracts are considered extraordinary.
   

3. Any other contracts not covered by the previous paragraph are considered ordinary.

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1. The Company may sign special contracts with large customers whereof the Macau Special Administrative Region may consider of special relevance to the economy.

2. Customers referred to under the previous paragraph may benefit from special tariffs, taking into account the characteristics of each customer and subject to prior approval from the Macau Special Administrative Region, under the Company's proposal.

3. The validity of special large customer contracts, as well as the status of their operation, tariffs and applicable tariff periods as well as any other particular provisions shall be established on a case-by-case basis and shall be covered by the relevant supply contract.

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1. The Company may sign temporary electricity supply contracts for non-permanent installations, for a pre-determined limited term, provided technical conditions are favorable to that effect and that inconvenience to the distribution network may not result therefrom.

2. Temporary electricity supply contracts imply the installation of provisional branch lines.

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1. Ordinary electricity supply contracts are signed for an initial term of one month, automatically and successively renewable for the same period, notwithstanding the provisions of paragraph 8.3 hereof

2. Temporary contracts have a limited term, wherefore the beginning and the end of their validity is explicitly set in the supply contract.

3. The Customer, in written and with a minimum notice of five working days, must inform the Company of his/her intention to terminate any contract signed under the terms provided in paragraphs 8.1 and 8.2 hereof, wherefore the Customer shall be liable for any amounts due until the removal of the meters, which shall be carried out during the same period

4. The term for special large customer contracts is specified in the respective supply contract pursuant to clause 6 hereof.

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1. The Customer is obliged to inform the Company, within a period of fifteen days, of any alteration to the respective name, firm or company name.

2. A Customer who, by any means, shall transfer or assign the operation of its premises is obliged to inform the Company of the name and address or Registered Office of the new Customer, otherwise he/she shall remain liable for all debits of the Customer until the date when such information is served to the Company.

3. In the case of transfer, the relevant deed must specify that the transferee agrees to comply with the contractual clauses and obligations undertaken by the transferor, wherefore, in case of non-specification, the simple continuance of the operation is deemed acknowledgment of such obligations on the part of the transferee.

4. In the case hereinbefore provided, the transferee may be required to sign another contract within fifteen days after notification to that effect by the Company.

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1. On the part of the Customer, if the concession has been suspended by reason of force majeure and the Company fails to retake the service after the end of such force majeure.

2. On the part of the Company, upon prior notice to the Customer:

   1. If the consumption for two consecutive months is left unpaid;
   2. If the precarious state of the Customer's installation or the manner wherein the electricity is being used, is likely to cause failure to the Company's network or withholding the same from performing its obligations with third parties or yet endangering the safety of persons or property;
   3. If the Customer refuses inspection of any metering devices, fittings, circuit breakers and relevant installations by the representatives of the Company;
   4. Permanent default on the obligations provided under paragraph 1.4, as well clause 9 or clause 22 thereof;
   5. If a situation of fraud is left unsolved, pursuant to paragraph 23.4.