Macau's CEM reduces tariff rate by 5 cents

CEM reduced the Tariff Clause Adjustment of the 2nd quarter from 28 to 23 cents following the drop of fuel oil price in the international market . The current residential tariff is 4 to 7 percent lower than the last quarter. Comparing to the same period of last year, it has been reduced by 6 to 10 percent.

Since the world fuel oil price slipped sharply, local generation becomes more cost-competitive than importation. This is also the strength of CEM’s proposal of a diversified energy source mix, which will offer more flexibility to select the most economical option, to ensure supply reliability and security, as well as to improve its bargaining power on importation price.

It is the second time that CEM reduced the Tariff Clause Adjustment this year. The decrease is made possible because Macau has its own generation.

In addition, CEM hopes to increase the ratio of natural gas power generation in the future to further enhance the cost effectiveness and environmental friendliness.

The tariff of Macau is lower than most major cities around the world.