The Electricity Authority of Cambodia is legal public entity, being granted the right from the Royal Government to be an autonomous agency to regulate the electric power services and to govern the relation between the delivery, receiving and use of electricity.
Responsibility between MME and EAC in Power Sector:
- The Ministry of Mines and Energy (MME) is responsible of controlling the whole Power Sector. The Ministry has the duty to set and administrate: Energy Policies, Electric Power strategies, Power Development Plan, technical, safety and environmental standard and other duties in power sector.
- The Electricity Authority of Cambodia (The Authority) is responsible for controlling the activities of electric power services and uses. The Authority has the duty to issue, revise, revoke or suspend the licenses for electric power services, to approve tariff, to issue the regulations to control, to impose penalty and to revolve the disputes related to the electric power services and uses.
Responsibility of MME:
- Set and administrate Energy Policies,
- Set and administrate Electric Power Strategies,
- Set and administrate Power Development Plan,
- Set and administrate Technical, Safety,
- Set and administrate Environmental Standard,
- Other duties.
Responsibility of EAC:
- Issue the regulations and licenses to electric power services,
- Review the cost and approve the tariff,
- Resolve the dispute,
- Control and impose the penalty.
The Powers and Duties:
Article 7 of Electricity Law provides to the Authority the following powers and duties:
- To issue, revise, suspend, revoke or deny the licenses for the supply of electricity services as provided in article 29 of this Law;
- To approve tariff rates and charges and terms and conditions of electric power services of licensees, except where the Authority consider those rates or charges and terms and conditions are established pursuant to a competitive, market-based process;
- To order to implement guidance procedures and standards for investment programs by licensees;
- To review the financial activities and corporate organization structure of licensees to the extent that these activities and organization directly affect the operation of the power sector and the efficiency of electricity supply;
- To evaluate and resolve consumer complaints and contract disputes involving licensees, to the extent that the complaints and disputes relate to the violation of the conditions of license;
- To approve and enforce a uniform system of accounts for all licensees;
- To prepare and publish reports of power sector and relevant information received from licensees for the benefit of the Government and the public interest;
- To prescribe fees applicable to licensees;
- To determine the procedures for informing the public about affairs within its duties, in order to ensure that the Electricity Authority of Cambodia complies with the principle of transparency as set forth in Article 3 of this law;
- To issue rules and regulations and to make appropriate orders, and to issue temporary and permanent injunction for electric power services;
- To impose monetary penalty, disconnect power supply, suspend or revoke the license for the violations of this Law, standards and regulations of the Electricity Authority of Cambodia;
- To require the electric power services and the customers to obey the rules relating to the national energy security, economic, environment and other Government policies;
- To perform any other function incidental or consequential to any of the duties as describes above;
- To establish the terms and conditions of employment of the officers or employees including expert/advisers of Electricity Authority of Cambodia.
- To approve and enforce the performance standards for licensees.
The Organization Chart:
The Authority’s decision and approvals on the key issues will be based on the discussion and voting in Board Meeting. Board Meeting is the highest decision making in EAC. Article 21 of Electricity Law has prescribed that all members of the Authority shall have the right to vote on all issues which are required the approval from the board. This approval is based on the majority vote. The Authority consists of three members, including the Chairman. The Chairman and members are designated and proposed by the Prime Minister and are appointed by the Royal Decree. Each member has a three years term except for the initial term. The term of each member shall be staggered. The Chairman’s position is equivalent to the rank of Secretary of State and the position of other members is equivalent to Under Secretary of State. All members of the Authority shall retire from the office when they attain the age of sixty.
Click Here to View the Organization Chart of EAC.
The Authority has an autonomous budget for its operation. This budget comes from the fees paid to the Authority by applicants and licensees. These fees are called license fee. The Authority shall determine the license fee for each financial year. The maximum license fees shall be determined by Sub-decree. The budget of the Authority shall be deposited in and account of a state bank of the Kingdom of Cambodia. Only the Authority has the right to use this fund. The Authority shall establish a budget of its operating expenses for each financial year that sets forth all the Authority’s expected revenues and expenses. The budget shall clearly state the proposed license fees for the financial year, together with the method of calculating the license fees, and the salaries and other remunerations entitlements to be paid to each of the members and senior staff of the Authority. The Authority shall submit this budget to the Government for review and approval.
EAC has the following missions:
- Establish a legal and reasonable environment in Power Sector for promoting the fair competition in the electric power business, promoting the long term efficient and quality investment and motivating the private sector to play the role as the inciter of the economic growth.
- Protect the right of the user to receive the continuous, qualitative and adequate electric power supply at the reasonable tariff.
- Establish the competition in where it can be made in Power Sector.
- Establish the conditions that the supply and use of electric power will be efficient, qualitative, continuous and transparent.