Press Release

CEM announces to subsidize three cents of 2nd quarter TCA for Tariff A

Macao, 21 April 2011

Due to the soaring international oil prices and Renminbi appreciation, according to the calculation under the concession contract, the 2nd quarter variable component of Tariff A - TCA, which depends on the prices of fuels and the imported power, should be 34 cents. However, concerning the impact of a lifting TCA to the residential and small & medium enterprises (SME) customers, CEM decides to subsidize 3 cents of TCA for Tariff A, i.e., to reduce the TCA from 34 cents to 31 cents per kWh. On the other hand, TCA of Tariffs B, C and D, in accordance with the contractual calculated value, set at 34 cents per kWh. It is understood that the purchase price of fuel oil used for power generation increased by 13.86% comparing with the previous quarter, but despite this significant increase, the overall tariff of Tariff A was only increased by 2.4% in this quarter, which is much lower than the increase in fuel prices.

CEM is committed to maintaining a stable tariff for Macao citizens. With the support of the Macao SAR Government, TCA for Tariff A has been reduced several times to be lower than the contractual calculated value. A lower tariff was maintained for 99% of the customers mainly residential and SME even when the worldwide energy oil prices were surging and Renminbi was appreciating.

With the objective of sustaining reliable power supply at reasonable prices, CEM is fully committed to strengthening its operational efficiency and customer service.