Press Release

CEM continues to subsidize Tariff A in the 3rd quarter, by reducing TCA from 35 cents to 32 cents

Macao, 20 July 2011

Due to the soaring international oil prices and Renminbi appreciation, according to the calculation under the concession contract, the 3rd quarter TCA will be 35 cents. However, taking into account the impact of a lifting TCA to the residential and small & medium enterprises (SME) customers, CEM decided to continue to subsidize three cents of TCA for Tariff A, i.e., to reduce the TCA from 35 cents to 32 cents per kWh. On the other hand, TCA of Tariffs B, C and D, in accordance with the contractual calculated value, set at 35 cents per kWh. All tariff groups have an increase of one cent over the previous quarter.

The purchase price of fuel oil used for power generation increased by 10% comparing with the previous quarter, and the Renminbi appreciation has been around 3% since the beginning of the year. Nevertheless, despite these significant increases, the overall tariff raised less than 1% (0,78 % for tariff A) in this quarter.

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 for three consecutive years to be lower than the contractual calculated value. A lower tariff is maintained for 99% of the customers mainly residential and SME which fully reflects CEM’s commitment to Macao’s society.

CEM will, as always, continue to provide reliable power supply at reasonable prices, and take care of the needs of the disadvantaged through a range of projects.