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Policy and Regulatory Framework in Power Sector in Cambodia

Policy and Regulatory Framework in Power Sector in Cambodia. By TY NORIN Chairman of Electricity Authority of Cambodia in Workshop on Power Pooling in Europe for the GMS and ASEAN interconnection Programme 24-28 November, 2003. Existing Situation of Power Supply in Cambodia.

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Policy and Regulatory Framework in Power Sector in Cambodia

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  1. Policy and Regulatory Framework in Power Sector in Cambodia By TY NORIN Chairman of Electricity Authority of Cambodia in Workshop on Power Pooling in Europe for the GMS and ASEAN interconnection Programme 24-28 November, 2003

  2. Existing Situation of Power Supply in Cambodia • Electricity Supply to different towns and villages in cambodia are through isolated supply systems having its own source of electricity and its own network. • No national or regional transmission system yet for interconnecting different load centers. The first Grid is preparing to start construction in 2004-2005. This Grid is cover mainly the southern, and, to a smaller extent, the north western region of the country. • In the absence of adequate and efficient infrastructure, consumers in Cambodia have to pay very high prices. • Areas near the border getting power supply from Vietnam or Thailand.

  3. Groups of Suppliers in Power Sector in Cambodia The Electricity Suppliers in Cambodia can be divided into three groups: • Public Utility (EDC) - serves Capital of Phnom Penh, large provincial capitals and other towns - 85 % of Country Consumption. • Private Utilities - serves 4 provincial towns and some large towns near border of Thailand – 10% of Country Consumption. • Small private Entrepreneurs - serves more than 600 rural areas (small diesel generator and LV network) – 5% of Country Consumption.

  4. Policy of the Government in Development of Power Sector • To provide an adequate supply of energy for consumers through out Cambodia at reasonable and affordable price; • To ensure a reliable, secure electricity supply at prices, which facilitate the investment in Cambodia and the development of the national economy. • To encourage exploration and environmentally and socially acceptable development of energy resources needed for supply to all sectors of the Cambodian economy. • To encourage efficient use of energy and to minimize environmental effects resulting from energy supply and use

  5. Policy of the Government in Power Sector Reform • Establish the enabling environment for an efficient development and operation of the sector, i.e. a suitable legal and regulatory framework; • Attract private sector participation in a transparent and competitive manner, as a way to introduce efficiency, mobilize financial resources and reaching a broader human resource base; and • Commercialize Public Utility, including a tariff reform to expand its market share.

  6. Action taken by Government of Cambodia to reform Power Sector • Corporatization and commercialisation of Public Utility - EDC: A Royal Decree on March 9, 1996 set out in broad terms the organizational structure for the power sector. The Decree separated EDC from MIME as a wholly state owned limited liability company to generate, transmit and distribute electricity. • Promulgation of Electricity Law: The Electricity Law of the Kingdom of Cambodia has been promulgated on February 2, 2001. • Establishment of Independent Regulator in Power Sector: The regulator in Power Sector – Electricity Authority of Cambodia (EAC) has been established in February, 2001 and started its operation from September, 2001.

  7. Action taken by Government of Cambodia to reform Power Sector (continued) • Preparation and issue clear policy for private participation in Power Sector: MIME with the assistance from WB has preparedclearPolicy associated with Sub-decree and Guidelines for private sector participation in the power sector in Cambodia. These documents will be submitted and approved by the Government soon. • Establishment of RE Board & Implementa- tion of RE Project: RGC is processing to issue the Royal Decree to establish the RE Board and preparing to implement the RE Project to promote private participation in Rural Electrification.

  8. Step of development of Regulatory Framework in Power Sector in Cambodia 1-Enact the Electricity Law as the basic legal framework of power sector in Cambodia 2-Establish an independent regulator of power sectorin Cambodia 3-Separation of functions of Policy making and Regulation in Cambodia 4-Formulate the conditions of licenses, prepare and issue the procedures, rules and regulations to regulate the Sector

  9. The main aims of Electricity Law of the Kingdom of Cambodia • Establish favorable conditions for investment in and the commercial operation of the power industry • Separation of the functions of policy making and regulation • Protection of the rights of the consumers to receive reliable and adequate electricity supply at reasonable cost • Promotion of private ownership of facilities for providing electric power services and to introduce competition wherever feasible • Establish Independent Regulator in Power Sector.

  10. Main functions of Regulator in Power Sector in Cambodia • Issue of licenses • Approval of tariffs • Evaluate and resolve consumer complaints • Issue rules and regulations • Enforce performance standards for licensees. • Monitor the functioning of licensees • Collect reports from licensees and publish the information to the public.

  11. Cross border power exchange There are 2 types of cross border power exchange: Cross border supply to Cambodian Towns near the Border Cross Border Transmission Link

  12. Existing cross border supply to Cambodian Towns near the Border 22 kV Cross-Border Supplies THAILAND RATNAKIRI PREAH VIHEAR BANTEY MEAN CHEY SIEM REAP STUNG TRENG BATTAMBANG KOMPONG THOM MONDULKIRI KRATIE PURSAT MEMUT KOMPONG CHAM KOMPONG CHHNANG LEGEND PHNOM PENH PONHEA KREK PREY VENG City or Pr. Town 115 KV LINES 230 KV LINES District or Village KOH KONG SVAY RIENG KOMPONG SPEU TAKHMAU ANGTASOM BAVIT TAKEO KAMPONG TRACH KAMPOT SIHANOUK VILLE KAMPONGRO VIET NAM

  13. Cross Border Transmission Link (under implementation) THAILAND RATNAKIRI PREAH VIHEAR BANTEY MEAN CHEY SIEM REAP Thermal Plant 10MW STUNG TRENG BATTAMBANG KOMPONG THOM Battambang Hydro MONDULKIRI KRATIE PURSAT KOMPONG CHAM KOMPONG CHHNANG LEGEND PHNOM PENH City or Town 115 KV 230 KV Power Plant KOMPONG SPEU PREY VENG KOH KONG Kirirom Hydro TAKHMAU SVAY RIENG Kamchay Hydro SHV Thermal TAKEO VIET NAM KAMPOT SIHANOUK VILLE VIET NAM

  14. THANKS

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