“The Authority shall have an autonomous budget for their operation. This budget shall come through fees paid to the Authority by applicants and licensees. The fees shall be determined by the Authority. This fee is called the license fee.

The license fees shall be deposited in an account of a state bank of the Kingdom of Cambodia. Only the Authority shall have the right to use this fund.

The maximum license fees shall be determined by Sub-Decree.

Any balance funds in the Authority account at the end of a year shall be carried forward to the next year budget.

Any shortfall and surplus in annual budget of the Authority as stated above shall be adjusted through the license fees at the next year budget.

In case that shortfall in budget cannot be met even after maximum readjustment, the Authority is still unable to meet its operation expenses and repayment loan with interest, the Authority shall request to the Royal Government for reviewing and approving the new maximum license fees.

The financial and accounting operation of the Authority shall be performed in accordance with the public accounting system”.

The maximum license fees have been determined by the Sub-Decree No. 131-OR-N-KR/BK dated December 27, 2001 and the same are as follows:

1-License Application Fee

1. For the application for favorable electric power services (Rural Electrification), application fee shall not exceed fifty thousands (50,000) Riels per license.

2. For the application for small size electric power services (less than 500 KW), application fee shall not exceed one hundred thousand (100,000) Riels per license.

3. For the application for medium size electric power services (from 500 – 3000 KW), application fee shall not exceed six hundred thousand (600,000) Riels per license.

4. For the application for large size electric power service (over 3000KW), application fee shall not exceed one million (1,000,000) Riels per license.

2- License Fee

1. Generation or power purchased from other country: license fee shall not exceed 1.70 Riels per kWh of generated or purchased power.

2. Transmission: license fee shall not exceed 0.70 Riels per kWh of transmitted power.

3. Distribution and Sale: license fee shall not exceed 1.20 Riels per kWh of sold power.

4. Retail: license fee shall not exceed 0.50 Riels per kWh of sold power.

5. Other services: license fee shall not exceed 0.1% of the service fee.

Determination license fee by EAC

The EAC has determined the license fees for the year 2005 as follows:

1. Generation or power purchased from other country: 1.50 Riels per kWh of generated or purchased power.

2. Transmission:  0.50 Riels per kWh of transmitted power.

3. Distribution and Sale:  0.90 Riels per kWh of sold power.

4. Retail: 0.50 Riels per kWh of sold power.

5. Other services: license fee shall be 0.10% of the service fee.

The EAC has determined the application fees for the year 2005 as follow:

1. In the application for favorable electric power services (Rural Electrification), the application fee equal fifty thousands(50,000 riels) per license.

2. In the application for small size electric power services (less than 500 kW) the application fee equal one hundred thousand (100,000 riels) per license.

3. In the application for medium size electric power services from (500 to 3000 kW) the application fee equal six hundred thousands (600,000 riels) per license

4. In the application for large size electric power services over 3,000 kW, the application fee equal one million riels (1,000,000 riels) per license.