Macau continues residential electric subsidy

CEM residential customers will continue to receive a maximum monthly subsidy set at US$18.75 from April 2009 to March 2010. The second phase of the Electricity Subsidy Scheme immediately took effect after the expiration of the first phase in March this year.

The accumulated subsidy balances from the first phase of the scheme will be transferred to the second phase of the scheme for continual use. All accumulated subsidy balances will be deducted up to MOP150 per month within two years till 2012, starting in March 2010 after the expiration of the second phase of the scheme. The unused accumulated electricity subsidies will carry over to the next month. After this period, all accumulated unused government subsidy balance will be discarded.

In the Companhia de Electricidade de Macau electricity bill, items of Monthly Government Subsidy, Unused Government Subsidy Transfer, and Accumulated Unused Government Subsidy will be listed showing the monthly government subsidy of MOP150, the monthly unused amount of subsidies that can be accumulated, and the total accumulated amount of unused subsidy.

There are two manners of implementing the scheme based on different levels of power consumption of the residential units, they will be handled in two manners. First, residential units with over US$18.75 of power consumption will first have the MOP150 of Monthly Government Subsidy deducted from the bill, and then pay the remaining charge. Second, residential units with under US$18.75 of power consumption will get US$18.75 of subsidiary to offset the power they used. The surplus can be carried forward. It shows in the Unused Government Subsidy Transfer and the Accumulated Unused Government Subsidy.

The government subsidy is only used to offset the spending of power consumption, and excludes expenses in fines and ammeter installation fees for customers. All the current preferential tariff programs, including the senior citizens program, Tariff A2 and A4 will continue to take effect, and the beneficiaries of these programs are also entitled to the government subsidy.

The electricity bill of this month will be delivered starting from April 21. There are 49,000 residential units who pay less than US$18.75 for electricity bill per month, accounting for 28 percent of the total number; these units can be free of electricity fees. There are 69,000 residential units who pay between US$18.75 and US$37.50 for electricity bill per month, covering 39 percent of the total number; these units can be free of at least half amount of the electricity bill.

In order to ensure fair use of the electricity subsidy, the Macao SAR Government will follow the previous actual cost payment mode and make a monthly financial settlement with CEM.