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Cambodia Cuts Tourism Sector Electricity Rates by 15% to Spur Economic Activity

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Nasiru Eneji Abdulrasheed
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Cambodia Cuts Tourism Sector Electricity Rates by 15% to Spur Economic Activity

In a bid to support the tourism industry during the peak season, the Cambodian government has implemented a 15% reduction in electricity tariffs. This relief measure will be effective for three months, from December 2023 to February 2024, and is aimed at alleviating some of the financial burdens on business owners and traders within the tourism sector.

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Announced by the Electricity Authority of Cambodia (EAC), the tariff cut will be applicable to consumers connected to medium and high voltage networks across the nation. It has been designed to provide relief for energy consumption that surpasses the average use over the past six months for businesses in the sector. However, the policy excludes institutions in education, health, finance, insurance, transportation, and general administration.

Procedure and Continuity

The EAC has encouraged eligible businesses to apply for the reduction with their local electricity suppliers. To address issues related to the tariff reduction and its procedures, the EAC and Electricity of Cambodia (EDC) have established a joint working group. The continuity of this initiative will hinge on the EDC's assessment of financial feasibility.

In September 2023, the government had also reduced electricity prices for industrial and agricultural businesses by 10 to 20%. The recent tariff reduction has been greeted enthusiastically by industry representatives such as Thuon Sinan, president of the Pacific Asia Travel Association (PATA) Cambodia Chapter. This enthusiasm comes in the wake of the challenges posed by the Covid-19 pandemic and the Russia-Ukraine war. The measure is integral to the government's efforts to stimulate economic activity and aid in the recovery of the tourism sector, which has not yet regained its pre-pandemic momentum.

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