Press Release

CEM holds Spring Lunch with the media pleased to report an outstanding supply reliability performance of 99.9998%

22 February 2011, Macao

Companhia de Electricidade de Macau—CEM, S.A. (CEM) hosted a Spring Lunch with the local media today with senior executives and frontline journalists invited to celebrate the Year of the Rabbit. The attending CEM management included CEM Board of Directors and Executive Committee members, CEM Customer Liaison Committee President Vong Kok Seng and Vice-President Lei Chi Fong were also invited to attend the lunch.

During the Spring Lunch, Chairman of the Board of Directors of CEM, Marques da Cruz expressed gratitude to the media for their support to CEM during the past year. As a Macao SAR company, CEM remains committed to working together with Macao SAR government to keep the successful work of CEM. Support from the media is always important to CEM and he looks forward to having media’s continuous support in future.

In addition, CEM Chief Executive Officer Franklin Willemyns also shared with the media CEM’s performance in the past year.

Last year, CEM successfully inked an extended power concession contract with the Macao SAR government for another 15 years. The contract formulated the permitted return rate to be sharply decreased to 9.5%, which was lower than the two electricity companies in Hong Kong. The contract also allowed opening power generation market and to introduce renewable energies, to maintain the existing power generation capacity in Macao. Besides, Tariff Stabilization Fund will be established to help stabilize electricity tariff.

Apart from this, Willemyns presented the summary of CEM’s achievements in all aspects in 2010, including improvement of the power supply reliability, environmental protection, improvement of customer services, and the major investment projects in 2011. In 2010, CEM strived to supply power to Macao citizens at a stable price, Tariff Clause Adjustment for Tariff A has been maintained stable throughout the year and below the contractual calculated value, allowing 99% of the customers mainly residential and small & medium enterprises to enjoy a lower tariff even when the worldwide fuel oil prices were surging and RMB was appreciating. He pointed out that the average oil price surged 21% last year, and CEM increased the power importation from mainland in a move to balance the energy source mix. With Macao’s rapid economic development, Macao has seen a growth of power consumption of 120% in the past 10 years.

CEM’s power supply reliability reached 99.9998% in 2010, which is a world-leading performance. On the other hand, the System Average Interruption Duration Index (SAIDI) is 1.04 minutes*, and the System Average Interruption Frequency Index (SAIFI) is 0.1*, the ever best performance. Maintaining the power supply reliability at a high level relies on CEM’s capital investment and its continuous improvement in the operation and the maintenance quality.

Last year, CEM continued to actively participate in and promote environmental protection. In order to spread application of renewable energy sources, CEM has piloted Photovoltaic Grid Power System at CEM Coloane B Power Station. It has also joined hands with the University of Macau and University of Saint Joseph to carry out researches on electric vehicle (EV) and charging station design. Moreover, CEM has launched the first public EV charging station at Park Lane Car Park to support the government’s efforts in promoting EV usage. With its committed measures to reduce greenhouse gas emission, CEM obtained the certification of ISO 14064 Greenhouse Gases Management System. It is the first public utility company in Macao, and the first power company in Hong Kong and Macao to obtain the certification.

As a corporate citizen, CEM joined hands with Macau Special Olympics last year to launch an internship program “CEM Brightening Stars Program”, to enable young people with intellectual disability to learn social skills and work techniques from real working environment, and help them to build up their potential and enhance their experience, in order to build a harmonious community.

In 2011, large investment projects including two 220kV substations in Ilha Verde and Cotai are expected to be completed within 2011 to 2012. Other investment projects including a 220kV backbone cable to connect two 220kV substations, replacement of five large transformers in substations in Ilha Verde, installation of 110kV transformers in substations in Cotai, installation of 2,000 electronic meters in residential households, and installation of Close Ring system at Penha Area. Meanwhile, CEM will continue to strengthen the medium, high and low voltage power distribution networks across Macao and retrofit the duct protection cables, so as to enhance the reliability of power supply and reduce the damages of excavation on cables.

Established in 1972, CEM has been providing Macau with essential and stable power supplies. As one of partners propelling Macau’s sustainable development, CEM pledges to keep its faith to provide Macao with reliable, safe and clean power services.

* Under CEM’s responsibility